[Congressional Record Volume 144, Number 87 (Monday, July 6, 1998)]
[Senate]
[Pages S7467-S7519]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      DEPARTMENT OF DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

  The Department of Defense Authorization Act for Fiscal Year 1999 (S. 
2060), passed by the Senate on June 25, 1998, is as follows:

                                S. 2060

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Department of Defense 
     Authorization Act for Fiscal Year 1999''.

[[Page S7468]]

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional defense committees defined.

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical demilitarization program.
Sec. 108. Defense health programs.
Sec. 109. Defense export loan guarantee program.

                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Longbow Hellfire missile 
              program.
Sec. 112. Condition for award of more than one multiyear contract for 
              the family of medium tactical vehicles.
Sec. 113. Armored system modernization.
Sec. 114. Reactive armor tiles.
Sec. 115. Annual reporting of costs associated with travel of members 
              of Chemical Demilitarization Citizens' Advisory 
              Commission.
Sec. 116. Extension of authority to carry out Armament Retooling and 
              Manufacturing Support Initiative.
Sec. 117. Alternative technologies for destruction of assembled 
              chemical weapons.

                       Subtitle C--Navy Programs

Sec. 121. CVN-77 nuclear aircraft carrier program.
Sec. 122. Increased amount to be excluded from cost limitation for 
              Seawolf submarine program.
Sec. 123. Multiyear procurement authority for the Medium Tactical 
              Vehicle Replacement.
Sec. 124. Multiyear procurement authority for certain aircraft 
              programs.

                     Subtitle D--Air Force Programs

Sec. 131. Joint Surveillance Target Attack Radar System.
Sec. 132. Limitation on replacement of engines on military aircraft 
              derived from Boeing 707 aircraft.
Sec. 133. F-22 aircraft program.
Sec. 134. C-130J aircraft program.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Crusader self-propelled artillery system program.
Sec. 212. CVN-77 nuclear aircraft carrier program.
Sec. 213. Unmanned aerial vehicle programs.
Sec. 214. Airborne Laser Program.
Sec. 215. Enhanced Global Positioning System program.
Sec. 216. Manufacturing Technology Program.
Sec. 217. Authority for use of major range and test facility 
              installations by commercial entities.
Sec. 218. Extension of authority to carry out certain prototype 
              projects.
Sec. 219. NATO alliance ground surveillance concept definition.
Sec. 220. NATO common-funded civil budget.
Sec. 221. Persian Gulf illnesses.
Sec. 222. DOD/VA Cooperative Research Program.
Sec. 223. Low Cost Launch Development Program.

                       Subtitle C--Other Matters

Sec. 231. Policy with respect to ballistic missile defense cooperation.
Sec. 232. Review of pharmacological interventions for reversing brain 
              injury.
Sec. 233. Landmines.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from the National Defense Stockpile Transaction 
              Fund.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Special Operations Command counterproliferation and 
              counterterrorism activities.
Sec. 312. Tagging system for identification of hydrocarbon fuels used 
              by the Department of Defense.
Sec. 313. Pilot program for acceptance and use of landing fees charged 
              for use of domestic military airfields by civil aircraft.
Sec. 314. NATO common-funded military budget.

                  Subtitle C--Environmental Provisions

Sec. 321. Transportation of polychlorinated biphenyls from abroad for 
              disposal in the United States.
Sec. 322. Modification of deadline for submittal to Congress of annual 
              reports on environmental activities.
Sec. 323. Submarine solid waste control.
Sec. 324. Payment of stipulated penalties assessed under CERCLA.
Sec. 325. Authority to pay negotiated settlement for environmental 
              cleanup of formerly used defense sites in Canada.
Sec. 326. Settlement of claims of foreign governments for environmental 
              cleanup of overseas sites formerly used by the Department 
              of Defense.
Sec. 327. Arctic Military Environmental Cooperation Program.
Sec. 328. Sense of Senate regarding oil spill prevention training for 
              personnel on board Navy vessels.

                  Subtitle D--Counter-Drug Activities

Sec. 331. Patrol coastal craft for drug interdiction by Southern 
              Command.
Sec. 332. Program authority for Department of Defense support for 
              counter-drug activities.
Sec. 333. Southwest border fence.
Sec. 334. Revision and clarification of authority for Federal support 
              of National Guard drug interdiction and counter-drug 
              activities.
Sec. 335. Sense of Congress regarding priority of drug interdiction and 
              counter-drug activities.

                       Subtitle E--Other Matters

Sec. 341. Liquidity of working-capital funds.
Sec. 342. Termination of authority to manage working-capital funds and 
              certain activities through the Defense Business 
              Operations Fund.
Sec. 343. Clarification of authority to retain recovered costs of 
              disposals in working-capital funds.
Sec. 344. Best commercial inventory practices for management of 
              secondary supply items.
Sec. 345. Increased use of smart cards.
Sec. 346. Public-private competition in the provision of support 
              services.
Sec. 347. Condition for providing financial assistance for support of 
              additional duties assigned to the Army National Guard.
Sec. 348. Repeal of prohibition on joint use of Gray Army Airfield, 
              Fort Hood, Texas.
Sec. 349. Inventory management of in-transit secondary items.
Sec. 350. Personnel reductions in Army Materiel Command.
Sec. 351. Prohibitions regarding evaluation of merit of selling malt 
              beverages and wine in commissary stores as exchange 
              system merchandise.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Limited exclusions of joint duty officers from limitations on 
              number of general and flag officers.
Sec. 403. Limitation on daily average of personnel on active duty in 
              grades E-8 and E-9.
Sec. 404. Repeal of permanent end strength requirement for support of 
              two major regional contingencies.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Exclusion of additional reserve component general and flag 
              officers from limitation on number of general and flag 
              officers who may serve on active duty.
Sec. 415. Increase in numbers of members in certain grades authorized 
              to be on active duty in support of the reserves.
Sec. 416. Consolidation of strength authorizations for active status 
              Naval Reserve flag officers of the Navy Medical 
              Department staff corps.

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Streamlined selective retention process for regular officers.
Sec. 502. Permanent applicability of limitations on years of active 
              naval service of Navy limited duty officers in grades of 
              commander and captain.
Sec. 503. Involuntary separation pay denied for officer discharged for 
              failure of selection for promotion requested by the 
              officer.
Sec. 504. Term of office of the Chief of the Air Force Nurse Corps.
Sec. 505. Attendance of recipients of Naval Reserve Officers' Training 
              Corps scholarships at participating colleges or 
              universities.

                 Subtitle B--Reserve Component Matters

Sec. 511. Service required for retirement of National Guard officer in 
              higher grade.
Sec. 512. Reduced time-in-grade requirement for reserve general and 
              flag officers involuntarily transferred from active 
              status.

[[Page S7469]]

Sec. 513. Eligibility of Army and Air Force Reserve brigadier generals 
              to be considered for promotion while on inactive status 
              list.
Sec. 514. Composition of selective early retirement boards for rear 
              admirals of the Naval Reserve and major generals of the 
              Marine Corps Reserve.
Sec. 515. Use of Reserves for emergencies involving weapons of mass 
              destruction.

                       Subtitle C--Other Matters

Sec. 521. Annual manpower requirements report.
Sec. 522. Four-year extension of certain force reduction transition 
              period management and benefits authorities.
Sec. 523. Continuation of eligibility for voluntary separation 
              incentive after involuntary loss of membership in Ready 
              or Standby Reserve.
Sec. 524. Repeal of limitations on authority to set rates and waive 
              requirement for reimbursement of expenses incurred for 
              instruction at service academies of persons from foreign 
              countries.
Sec. 525. Repeal of restriction on civilian employment of enlisted 
              members.
Sec. 526. Extension of reporting dates for Commission on Military 
              Training and Gender-Related Issues.
Sec. 527. Moratorium on changes of gender-related policies and 
              practices pending completion of the work of the 
              Commission on Military Training and Gender-Related 
              Issues.
Sec. 528. Transitional compensation for abused dependent children not 
              residing with the spouse or former spouse of a member 
              convicted of dependent abuse.
Sec. 529. Pilot program for treating GED and home school diploma 
              recipients as high school graduates for determinations of 
              eligibility for enlisting in the Armed Forces.
Sec. 530. Waiver of time limitations for award of certain decorations 
              to certain persons.
Sec. 531. Prohibition on entry into correctional facilities for 
              presentation of decorations to persons who commit certain 
              crimes before presentation.
Sec. 532. Advancement of Benjamin O. Davis, Junior, to grade of 
              general.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1999.
Sec. 602. Rate of pay for cadets and midshipmen at the service 
              academies.
Sec. 603. Payments for movements of household goods arranged by 
              members.
Sec. 604. Leave without pay for suspended academy cadets and 
              midshipmen.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Three-month extension of certain bonuses and special pay 
              authorities for reserve forces.
Sec. 612. Three-month extension of certain bonuses and special pay 
              authorities for nurse officer candidates, registered 
              nurses, and nurse anesthetists.
Sec. 613. Three-month extension of authorities relating to payment of 
              other bonuses and special pays.
Sec. 614. Eligibility of Reserves for selective reenlistment bonus when 
              reenlisting or extending to perform active guard and 
              reserve duty.
Sec. 615. Repeal of ten-percent limitation on payments of selective 
              reenlistment bonuses in excess of $20,000.
Sec. 616. Increase of maximum amount authorized for Army enlistment 
              bonus.
Sec. 617. Education loan repayment program for health professions 
              officers serving in Selected Reserve.
Sec. 618. Increase in amount of basic educational assistance under all-
              volunteer force program for personnel with critically 
              short skills or specialties.
Sec. 619. Relationship of entitlements to enlistment bonuses and 
              benefits under the All-Volunteer Force Educational 
              Assistance Program.
Sec. 620. Hardship duty pay.
Sec. 620A. Increased hazardous duty pay for aerial flight crewmembers 
              in pay grades E-4 to E-9.
Sec. 620B. Diving duty special pay for divers having diving duty as a 
              nonprimary duty.
Sec. 620C. Retention incentives initiative for critically short 
              military occupational specialties.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Travel and transportation for rest and recuperation in 
              connection with contingency operations and other duty.
Sec. 622. Payment for temporary storage of baggage of dependent student 
              not taken on annual trip to overseas duty station of 
              sponsor.
Sec. 623. Commercial travel of Reserves at Federal supply schedule 
              rates for attendance at inactive duty training 
              assemblies.

    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 631. Paid-up coverage under Survivor Benefit Plan.
Sec. 632. Court-required Survivor Benefit Plan coverage effectuated 
              through elections and deemed elections.
Sec. 633. Recovery, care, and disposition of remains of medically 
              retired member who dies during hospitalization that 
              begins while on active duty.
Sec. 634. Survivor Benefit Plan open enrollment period.
Sec. 635. Eligibility for payments of certain survivors of captured and 
              interned Vietnamese operatives who were unmarried and 
              childless at death.
Sec. 636. Clarification of recipient of payments to persons captured or 
              interned by North Vietnam.
Sec. 637. Presentation of United States flag to members of the Armed 
              Forces.
Sec. 638. Elimination of backlog of unpaid retired pay.

                       Subtitle E--Other Matters

Sec. 641. Definition of possessions of the United States for pay and 
              allowances purposes.
Sec. 642. Federal employees' compensation coverage for students 
              participating in certain officer candidate programs.
Sec. 643. Authority to provide financial assistance for education of 
              certain defense dependents overseas.
Sec. 644. Voting rights of military personnel.

                         TITLE VII--HEALTH CARE

Sec. 701. Dependents' dental program.
Sec. 702. Extension of authority for use of personal services contracts 
              for provision of health care at military entrance 
              processing stations and elsewhere outside medical 
              treatment facilities.
Sec. 703. TRICARE Prime automatic enrollments and retiree payment 
              options.
Sec. 704. Limited continued CHAMPUS coverage for persons unaware of a 
              loss of CHAMPUS coverage resulting from eligibility for 
              medicare.
Sec. 705. Enhanced Department of Defense organ and tissue donor 
              program.
Sec. 706. Joint Department of Defense and Department of Veterans 
              Affairs reviews relating to interdepartmental cooperation 
              in the delivery of medical care.
Sec. 707. Demonstration projects to provide health care to certain 
              medicare-eligible beneficiaries of the military health 
              care system.
Sec. 708. Professional qualifications of physicians providing military 
              health care.
Sec. 709. Assessment of establishment of independent entity to evaluate 
              post-conflict illnesses among members of the Armed Forces 
              and health care provided by the Department of Defense and 
              Department of Veterans Affairs before and after 
              deployment of such members.
Sec. 710. Lyme disease.
Sec. 711. Accessibility to care under TRICARE.
Sec. 712. Health benefits for abused dependents of members of the Armed 
              Forces.
Sec. 713. Process for waiving informed consent requirement for 
              administration of certain drugs to members of Armed 
              Forces.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Sec. 801. Para-aramid fibers and yarns.
Sec. 802. Procurement of travel services for official and unofficial 
              travel under one contract.
Sec. 803. Limitation on use of price preference upon attainment of 
              contract goal for small and disadvantaged businesses.
Sec. 804. Distribution of assistance under the Procurement Technical 
              Assistance Cooperative Agreement Program.
Sec. 805. Defense commercial pricing management improvement.
Sec. 806. Department of Defense purchases through other agencies.
Sec. 807. Supervision of Defense Acquisition University structure by 
              Under Secretary of Defense for Acquisition and 
              Technology.

[[Page S7470]]

Sec. 808. Repeal of requirement for Director of Acquisition Education, 
              Training, and Career Development to be within the Office 
              of the Under Secretary of Defense for Acquisition and 
              Technology.
Sec. 809. Eligibility of involuntarily downgraded employee for 
              membership in an acquisition corps.
Sec. 810. Pilot programs for testing program manager performance of 
              product support oversight responsibilities for life cycle 
              of acquisition programs.
Sec. 811. Scope of protection of certain information from disclosure.
Sec. 812. Plan for rapid transition from completion of Small Business 
              Innovation Research into defense acquisition programs.
Sec. 813. Senior executives covered by limitation on allowability of 
              compensation for certain contractor personnel.
Sec. 814. Separate determinations of exceptional waivers of truth in 
              negotiation requirements for prime contracts and 
              subcontracts.
Sec. 815. Five-year authority for Secretary of the Navy to exchange 
              certain items.
Sec. 816. Clarification of responsibility for submission of information 
              on prices previously charged for property or services 
              offered.
Sec. 817. Denial of qualification of a small disadvantaged business 
              supplier.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Reduction in number of Assistant Secretary of Defense 
              positions.
Sec. 902. Renaming of position of Assistant Secretary of Defense for 
              Command, Control, Communications, and Intelligence.
Sec. 903. Authority to expand the National Defense University.
Sec. 904. Reduction in Department of Defense headquarters staff.
Sec. 905. Permanent requirement for quadrennial defense review.
Sec. 906. Management reform for research, development, test, and 
              evaluation.
Sec. 907. Restructuring of administration of Fisher Houses.
Sec. 908. Redesignation of Director of Defense Research and Engineering 
              as Director of Defense Technology and 
              Counterproliferation and transfer of responsibilities.
Sec. 909. Center for Hemispheric Defense Studies.
Sec. 910. Military aviation accident investigations.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of emergency appropriations for fiscal year 
              1999. 
Sec. 1003. Authorization of prior emergency supplemental appropriations 
              for fiscal year 1998.
Sec. 1004. Partnership for Peace information system management.
Sec. 1005. Reductions in fiscal year 1998 authorizations of 
              appropriations for division A and division B and 
              increases in certain authorizations of appropriations.
Sec. 1006. Amount authorized for contributions for NATO common-funded 
              budgets.

                       Subtitle B--Naval Vessels

Sec. 1011. Iowa class battleship returned to Naval Vessel Register.
Sec. 1012. Long-term charter of three vessels in support of submarine 
              rescue, escort, and towing.
Sec. 1013. Transfers of certain naval vessels to certain foreign 
              countries.
Sec. 1014. Sense of Congress concerning the naming of an LPD-17 vessel.
Sec. 1015. Conveyance of NDRF vessel ex-U.S.S. Lorain County.
Sec. 1016. Homeporting of the U.S.S. Iowa battleship in San Francisco.
Sec. 1017. Ship scrapping pilot program.

       Subtitle C--Miscellaneous Report Requirements and Repeals

Sec. 1021. Repeal of reporting requirements.
Sec. 1022. Report on Department of Defense financial management 
              improvement plan.
Sec. 1023. Feasibility study of performance of Department of Defense 
              finance and accounting functions by private sector 
              sources or other Federal Government sources.
Sec. 1024. Reorganization and consolidation of operating locations of 
              the Defense Finance and Accounting Service.
Sec. 1025. Report on inventory and control of military equipment.
Sec. 1026. Report on continuity of essential operations at risk of 
              failure because of computer systems that are not year 
              2000 compliant.
Sec. 1027. Reports on naval surface fire-support capabilities.
Sec. 1028. Report on roles in Department of Defense aviation accident 
              investigations.
Sec. 1029. Strategic plan for expanding distance learning initiatives.
Sec. 1030. Report on involvement of Armed Forces in contingency and 
              ongoing operations.
Sec. 1031. Submission of report on objectives of a contingency 
              operation with first request for funding the operation.
Sec. 1032. Reports on the development of the European Security and 
              Defense Identity.
Sec. 1033. Report on reduction of infrastructure costs at Brooks Air 
              Force Base, Texas.
Sec. 1034. Annual GAO review of F/A-18E/F aircraft program.
Sec. 1035. Review and report regarding the distribution of National 
              Guard resources among States.
Sec. 1036. Report on the peaceful employment of former Soviet experts 
              on weapons of mass destruction.

                       Subtitle D--Other Matters

Sec. 1041. Cooperative counterproliferation program.
Sec. 1042. Extension of counterproliferation authorities for support of 
              United Nations Special Commission on Iraq.
Sec. 1043. One-year extension of limitation on retirement or 
              dismantlement of strategic nuclear delivery systems.
Sec. 1044. Direct-line communication between United States and Russian 
              commanders of strategic forces.
Sec. 1045. Chemical warfare defense.
Sec. 1046. Accounting treatment of advance payment of personnel.
Sec. 1047. Reinstatement of definition of financial institution in 
              authorities for reimbursing defense personnel for 
              Government errors in direct deposits of pay.
Sec. 1048. Pilot program on alternative notice of receipt of legal 
              process for garnishment of Federal pay for child support 
              and alimony.
Sec. 1049. Costs payable to the Department of Defense and other Federal 
              agencies for services provided to the Defense Commissary 
              Agency.
Sec. 1050. Collection of dishonored checks presented at commissary 
              stores.
Sec. 1051. Defense Commissary Agency telecommunications.
Sec. 1052. Research grants competitively awarded to service academies.
Sec. 1053. Clarification and simplification of responsibilities of 
              Inspectors General regarding whistleblower protections.
Sec. 1054. Amounts recovered from claims against third parties for loss 
              or damage to personal property shipped or stored at 
              Government expense.
Sec. 1055. Eligibility for attendance at Department of Defense domestic 
              dependent elementary and secondary schools.
Sec. 1056. Fees for providing historical information to the public.
Sec. 1057. Periodic inspection of the Armed Forces Retirement Home.
Sec. 1058. Transfer of F-4 Phantom II aircraft to foundation.
Sec. 1059. Act constituting presidential approval of vessel war risk 
              insurance requested by the Secretary of Defense.
Sec. 1060. Commendation and memorialization of the United States Navy 
              Asiatic Fleet.
Sec. 1061. Program to commemorate 50th anniversary of the Korean War.
Sec. 1062. Department of Defense use of frequency spectrum.
Sec. 1063. Technical and clerical amendments.
Sec. 1064. Extension and reauthorization of Defense Production Act of 
              1950.
Sec. 1065. Budgeting for continued participation of United States 
              forces in NATO operations in Bosnia and Herzegovina.
Sec. 1066. NATO participation in the performance of public security 
              functions of civilian authorities in Bosnia and 
              Herzegovina.
Sec. 1067. Pilot program for revitalizing the laboratories and test and 
              evaluation centers of the Department of Defense.
Sec. 1068. Sense of Congress regarding the heroism, sacrifice, and 
              service of former South Vietnamese commandos in 
              connection with United States Armed Forces during the 
              Vietnam conflict.
Sec. 1069. Sense of the Senate regarding declassification of classified 
              information of the Department of Defense and the 
              Department of Energy.
Sec. 1070. Russian nonstrategic nuclear weapons.
Sec. 1071. Sense of Senate on nuclear tests in South Asia.
Sec. 1072. Sense of Congress regarding continued participation of 
              United States forces in operations in Bosnia and 
              Herzegovina.
Sec. 1073. Commission to assess the reliability, safety, and security 
              of the United States nuclear deterrent.
Sec. 1074. Authority for waiver of moratorium on Armed Forces use of 
              antipersonnel landmines.

[[Page S7471]]

Sec. 1075. Appointment of Director and Deputy Director of the Naval 
              Home.
Sec. 1076. Sense of the Congress on the Defense Science and Technology 
              Program.
Sec. 1077. Demilitarization and exportation of defense property.
Sec. 1078. Designation of America's National Maritime Museum.
Sec. 1079. Burial honors for veterans.
Sec. 1080. Chemical stockpile emergency preparedness program.
Sec. 1081. Sense of Senate regarding the August 1995 assassination 
              attempt against President Shevardnadze of Georgia.
Sec. 1082. Issuance of burial flags for deceased members and former 
              members of the Selected Reserve.
Sec. 1083. Eliminating secret Senate holds.
Sec. 1084. Defense burdensharing.
Sec. 1085. Review of Defense Automated Printing Service functions.
Sec. 1086. Increased missile threat in Asia-Pacific region.
Sec. 1087. Cooperation between the Department of the Army and the EPA 
              in meeting CWC requirements.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Repeal of employment preference not needed for recruitment 
              and retention of qualified child care providers.
Sec. 1102. Maximum pay rate comparability for faculty members of the 
              United States Air Force Institute of Technology.
Sec. 1103. Four-year extension of voluntary separation incentive pay 
              authority.
Sec. 1104. Department of Defense employee voluntary early retirement 
              authority.
Sec. 1105. Defense Advanced Research Projects Agency experimental 
              personnel management program for technical personnel.

              TITLE XII--JOINT WARFIGHTING EXPERIMENTATION

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Reports on joint warfighting experimentation.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

       For purposes of this Act, the term ``congressional defense 
     committees'' means--
       (1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on National Security and the Committee on 
     Appropriations of the House of Representatives.

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for procurement for the Army as follows:
       (1) For aircraft, $1,466,508,000.
       (2) For missiles, $1,175,539,000.
       (3) For weapons and tracked combat vehicles, 
     $1,443,108,000.
       (4) For ammunition, $1,010,155,000.
       (5) For other procurement, $3,565,927,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 1999 for procurement for the Navy as follows:
       (1) For aircraft, $7,499,934,000.
       (2) For weapons, including missiles and torpedoes, 
     $1,370,045,000.
       (3) For shipbuilding and conversion, $6,067,272,000.
       (4) For other procurement, $4,052,012,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 1999 for procurement for the 
     Marine Corps in the amount of $910,558,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for procurement of ammunition 
     for the Navy and the Marine Corps in the amount of 
     $476,539,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for procurement for the Air Force as follows:
       (1) For aircraft, $8,303,839,000.
       (2) For missiles, $2,354,745,000.
       (3) For ammunition, $384,161,000.
       (4) For other procurement, $6,792,081,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for Defense-wide procurement in the amount of 
     $2,029,250,000.

     SEC. 105. RESERVE COMPONENTS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for procurement of aircraft, vehicles, 
     communications equipment, and other equipment for the reserve 
     components of the Armed Forces as follows:
       (1) For the Army National Guard, $10,000,000.
       (2) For the Air National Guard, $10,000,000.
       (3) For the Army Reserve, $10,000,000.
       (4) For the Naval Reserve, $10,000,000.
       (5) For the Air Force Reserve, $10,000,000.
       (6) For the Marine Corps Reserve, $10,000,000.

     SEC. 106. DEFENSE INSPECTOR GENERAL.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for procurement for the Inspector General of the 
     Department of Defense in the amount of $1,300,000.

     SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

       There is hereby authorized to be appropriated for fiscal 
     year 1999 the amount of $780,150,000 for--
       (1) the destruction of lethal chemical agents and munitions 
     in accordance with section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521); and
       (2) the destruction of chemical warfare material of the 
     United States that is not covered by section 1412 of such 
     Act.

     SEC. 108. DEFENSE HEALTH PROGRAMS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for the Department of Defense for procurement for 
     carrying out health care programs, projects, and activities 
     of the Department of Defense in the total amount of 
     $402,387,000.

     SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for the Department of Defense for carrying out the 
     Defense Export Loan Guarantee Program under section 2540 of 
     title 10, United States Code, in the total amount of 
     $1,250,000.

                       Subtitle B--Army Programs

     SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR LONGBOW 
                   HELLFIRE MISSILE PROGRAM.

       Beginning with the fiscal year 1999 program year, the 
     Secretary of the Army may, in accordance with section 2306b 
     of title 10, United States Code, enter into a multiyear 
     procurement contract for the procurement of the Longbow 
     Hellfire missile. The contract may be for a term of five 
     years.

     SEC. 112. CONDITION FOR AWARD OF MORE THAN ONE MULTIYEAR 
                   CONTRACT FOR THE FAMILY OF MEDIUM TACTICAL 
                   VEHICLES.

       Before awarding a multiyear procurement contract for the 
     production of the Family of Medium Tactical Vehicles to more 
     than one contractor under the authority of section 112(b) of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 1648), the Secretary of the 
     Army shall certify in writing to the congressional defense 
     committees that--
       (1) the total quantity of Family of Medium Tactical 
     Vehicles trucks required by the Army to be delivered in any 
     12-month period exceeds the production capacity of any single 
     prime contractor; or
       (2)(A) the total cost of the procurements to the Army under 
     all such contracts over the period of the contracts will be 
     the same as or lower than the amount that would be the total 
     cost of the procurements if only one such contract were 
     awarded; and
       (B) the vehicles to be produced by all contractors under 
     the contracts will be produced with common components that 
     will be interchangeable among similarly configured models.

     SEC. 113. ARMORED SYSTEM MODERNIZATION.

       (a) Limitation.--Of the funds authorized to be appropriated 
     under section 101(3), $20,300,000 of the funds available for 
     the M1A1D Application Integration Kit may not be obligated 
     for the procurement of the Kit until 30 days after the 
     Secretary of the Army submits the report required under 
     subsection (b).
       (b) Report.--Not later than January 31, 1999, the Secretary 
     of the Army shall submit a report on armored system 
     modernization to the congressional defense committees. The 
     report shall contain an assessment of the current acquisition 
     and fielding strategies for the M1A2 Abrams Tank and M2A3 
     Bradley Fighting Vehicle and an assessment of alternatives to 
     those strategies. The report shall specifically include an 
     assessment of an alternative fielding strategy that provides 
     for placing all of the armored vehicles configured in the 
     latest variant into one heavy corps. The assessment of each 
     alternative strategy shall include the following:
       (1) The relative effects on warfighting capabilities in 
     terms of operational effectiveness and training and support 
     efficiencies, taking into consideration the joint warfighting 
     context.
       (2) How the alternative strategy would facilitate the 
     transition to the Future Scout and Cavalry System, the Future 
     Combat System, or other armored systems for the future force 
     structure known as the Army After Next.
       (3) How the alternative strategy fits into the context of 
     overall armored system modernization through 2020.
       (4) Budgetary implications.
       (5) Implications for the national technology and industrial 
     base.

     SEC. 114. REACTIVE ARMOR TILES.

       (a) Limitation.--None of the funds authorized to be 
     appropriated under section 101(3) or 102(b) may be obligated 
     for the procurement of reactive armor tiles until 30 days 
     after the date on which the Secretary of Defense submits to 
     the congressional defense committees the study required by 
     subsection (c).
       (b) Exception.--The limitation in subsection (a) does not 
     apply to the obligation of any funds for the procurement of 
     armor tiles for an armored vehicle for which the Secretary of 
     the Army or, in the case of the Marine Corps, the Secretary 
     of the Navy, had established a requirement for such tiles 
     before the date of the enactment of this Act.
       (c) Study Required.--(1) The Secretary of Defense shall 
     contract with an entity independent of the Department of 
     Defense to conduct a study of the present and future 
     operational requirements of the Army and the Marine Corps for 
     reactive armor tiles for

[[Page S7472]]

     armored vehicles and to submit to the Secretary a report on 
     the results of the study.
       (2) The study shall include the following:
       (A) A detailed assessment of the operational requirements 
     of the Army and the Marine Corps for reactive armor tiles for 
     each of the armored vehicles presently in use, including the 
     requirements for each vehicle in its existing configurations 
     and in configurations proposed for the vehicle.
       (B) For each armored vehicle, an analysis of the costs and 
     benefits of the procurement and installation of the tiles, 
     including a comparison of those costs and benefits with the 
     costs and benefits of any existing upgrade program for the 
     armored vehicle.
       (3) The entity carrying out the study shall request the 
     views of the Secretary of the Army and the Secretary of the 
     Navy.
       (d) Submission to Congress.--Not later than April 1, 1999, 
     the Secretary of Defense shall submit to the congressional 
     defense committees--
       (1) the report on the study;
       (2) the comments of the Secretary of the Army and the 
     Secretary of the Navy on the study; and
       (3) for each vehicle for which it is determined that a 
     requirement for reactive armor tiles exists, the Secretary's 
     recommendations as to the number of vehicles to be equipped 
     with the tiles.

     SEC. 115. ANNUAL REPORTING OF COSTS ASSOCIATED WITH TRAVEL OF 
                   MEMBERS OF CHEMICAL DEMILITARIZATION CITIZENS' 
                   ADVISORY COMMISSION.

       (a) Information To Be Included in Annual Report on Chemical 
     Demilitarization Program.--Section 1412(g)(2) of the 
     Department of Defense Authorization Act, 1986 (50 U.S.C. 
     1521(g)(2)) is amended by adding at the end the following:
       ``(C) An accounting of all funds expended (for the fiscal 
     year covered by the report) for travel and associated travel 
     costs for Citizens' Advisory Commissioners under section 
     172(g) of Public Law 102-484 (50 U.S.C. 1521 note).''.
       (b) Technical Amendment.--Section 1412(g) of section 1412 
     of such Act is amended by striking out ``(g) Periodic 
     Reports.--'' and inserting in lieu thereof ``(g) Annual 
     Report.--''.

     SEC. 116. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT 
                   RETOOLING AND MANUFACTURING SUPPORT INITIATIVE.

       Section 193(a) of the Armament Retooling and Manufacturing 
     Support Act of 1992 (subtitle H of title I of Public Law 102-
     484; 10 U.S.C. 2501 note) is amended by striking out ``During 
     fiscal years 1993 through 1998'' and inserting in lieu 
     thereof ``During fiscal years 1993 through 1999''.

     SEC. 117. ALTERNATIVE TECHNOLOGIES FOR DESTRUCTION OF 
                   ASSEMBLED CHEMICAL WEAPONS.

       (a) Program Management.--The program manager for the 
     Assembled Chemical Weapons Assessment shall continue to 
     manage the development and testing (including demonstration 
     and pilot-scale testing) of technologies for the destruction 
     of lethal chemical munitions that are potential or 
     demonstrated alternatives to incineration. In performing such 
     function, the program manager shall act independently of the 
     program manager for the baseline chemical demilitarization 
     program and shall report to the Under Secretary of Defense 
     for Acquisition and Technology.
       (b) Post-Demonstration Activities.--(1) The program manager 
     for the Assembled Chemical Weapons Assessment may undertake 
     the activities that are necessary to ensure that an 
     alternative technology for the destruction of lethal chemical 
     munitions can be implemented immediately after--
       (A) the technology has been demonstrated successful; and
       (B) the Under Secretary of Defense for Acquisition and 
     Technology has submitted a report on the demonstration to 
     Congress.
       (2) To prepare for the immediate implementation of any such 
     technology, the program manager may, during fiscal years 1998 
     and 1999, take the following actions:
       (A) Establish program requirements.
       (B) Prepare procurement documentation.
       (C) Develop environmental documentation.
       (D) Identify and prepare to meet public outreach and public 
     participation requirements.
       (E) Prepare to award a contract for the design, 
     construction, and operation of a pilot facility for the 
     technology to the provider team for the technology not later 
     than June 1, 1999.
       (c) Independent Evaluation.--The Under Secretary of Defense 
     for Acquisition and Technology shall provide for two 
     evaluations of the cost and schedule of the Assembled 
     Chemical Weapons Assessment to be performed, and for each 
     such evaluation to be submitted to the Under Secretary, not 
     later than September 30, 1999. One of the evaluations shall 
     be performed by a nongovernmental organization qualified to 
     make such an evaluation, and the other evaluation shall be 
     performed separately by the Cost Analysis Improvement Group 
     of the Department of Defense.
       (d) Pilot Facilities Contracts.--(1) The Under Secretary of 
     Defense for Acquisition and Technology shall determine 
     whether to proceed with pilot-scale testing of a technology 
     referred to in paragraph (2) in time to award a contract for 
     the design, construction, and operation of a pilot facility 
     for the technology to the provider team for the technology 
     not later than December 30, 1999. If the Under Secretary 
     determines to proceed with such testing, the Under Secretary 
     shall (exercising the acquisition authority of the Secretary 
     of Defense) so award a contract not later than such date.
       (2) Paragraph (1) applies to an alternative technology for 
     the destruction of lethal chemical munitions, other than 
     incineration, that the Under Secretary--
       (A) certifies in writing to Congress is--
       (i) as safe and cost effective for disposing of assembled 
     chemical munitions as is incineration of such munitions; and
       (ii) is capable of completing the destruction of such 
     munitions on or before the later of the date by which the 
     destruction of the munitions would be completed if 
     incineration were used or the deadline date for completing 
     the destruction of the munitions under the Chemical Weapons 
     Convention; and
       (B) determines as satisfying the Federal and State 
     environmental and safety laws that are applicable to the use 
     of the technology and to the design, construction, and 
     operation of a pilot facility for use of the technology.
       (3) The Under Secretary shall consult with the National 
     Research Council in making determinations and certifications 
     for the purpose of paragraph (2).
       (4) In this subsection, the term ``Chemical Weapons 
     Convention'' means the Convention on the Prohibition of 
     Development, Production, Stockpiling and Use of Chemical 
     Weapons and on their Destruction, opened for signature on 
     January 13, 1993, together with related annexes and 
     associated documents.
       (e) Funding.--(1) Of the total amount authorized to be 
     appropriated under section 107, $18,000,000 shall be 
     available for the program manager for the Assembled Chemical 
     Weapons Assessment for the following:
       (A) Demonstrations of alternative technologies under the 
     Assembled Chemical Weapons Assessment.
       (B) Planning and preparation to proceed from demonstration 
     of an alternative technology immediately into the development 
     of a pilot-scale facility for the technology, including 
     planning and preparation for--
       (i) continued development of the technology leading to 
     deployment of the technology for use;
       (ii) satisfaction of requirements for environmental 
     permits;
       (iii) demonstration, testing, and evaluation;
       (iv) initiation of actions to design a pilot plant;
       (v) provision of support at the field office or depot level 
     for deployment of the technology for use; and
       (vi) educational outreach to the public to engender support 
     for the deployment.
       (C) The independent evaluation of cost and schedule 
     required under subsection (c).
       (2) Funds authorized to be appropriated under section 
     107(1) are authorized to be used for awarding contracts in 
     accordance with subsection (d) and for taking any other 
     action authorized in this section.
       (f) Assembled Chemical Weapons Assessment Defined.--In this 
     section, the term ``Assembled Chemical Weapons Assessment'' 
     means the pilot program carried out under section 8065 of the 
     Department of Defense Appropriations Act, 1997 (section 
     101(b) of Public Law 104-208; 110 Stat. 3009-101; 50 U.S.C. 
     1521 note).

                       Subtitle C--Navy Programs

     SEC. 121. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

       Of the amount authorized to be appropriated under section 
     102(a)(3) for fiscal year 1999, $124,500,000 is available for 
     the advance procurement and advance construction of 
     components (including nuclear components) for the CVN-77 
     nuclear aircraft carrier program.

     SEC. 122. INCREASED AMOUNT TO BE EXCLUDED FROM COST 
                   LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

       Section 123(a) of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1650) is 
     amended by striking out ``$272,400,000'' and inserting in 
     lieu thereof ``$557,600,000''.

     SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR THE MEDIUM 
                   TACTICAL VEHICLE REPLACEMENT.

       Beginning with the fiscal year 1999 program year, the 
     Secretary of the Navy may, in accordance with section 2306b 
     of title 10, United States Code, enter into a multiyear 
     procurement contract for the procurement of the Medium 
     Tactical Vehicle Replacement. The contract may be for a term 
     of five years.

     SEC. 124. MULTIYEAR PROCUREMENT AUTHORITY FOR CERTAIN 
                   AIRCRAFT PROGRAMS.

       Beginning with the fiscal year 1999 program year, the 
     Secretary of the Navy may, in accordance with section 2306b 
     of title 10, United States Code, enter into multiyear 
     contracts for the procurement of the following aircraft:
       (1) The AV-8B aircraft.
       (2) The E-2C aircraft.
       (3) The T-45 aircraft.

                     Subtitle D--Air Force Programs

     SEC. 131. JOINT SURVEILLANCE TARGET ATTACK RADAR SYSTEM.

       (a) Amount for Follow-On Options.--Of the amount authorized 
     to be appropriated under section 103(1) for the Joint 
     Surveillance Target Attack Radar System (JSTARS) program, 
     $72,000,000 is available for funding the following options:
       (1) Advance procurement of long-lead items for two 
     additional E-8C JSTARS aircraft.
       (2) Payment of expenses associated with termination of 
     production of JSTARS aircraft, together with augmentation of 
     other

[[Page S7473]]

     funding for the program for development of an improved joint 
     surveillance target attack radar, known as the radar 
     technology insertion program.
       (b) Limitation.--None of the funds available in accordance 
     with subsection (a) for funding an option described in that 
     subsection may be obligated until 30 days after the date on 
     which the Secretary of Defense submits to Congress a plan for 
     using the funds. The plan shall specify the option selected, 
     the reasons for the selection of that option, and details 
     about how the funds are to be used for that option.

     SEC. 132. LIMITATION ON REPLACEMENT OF ENGINES ON MILITARY 
                   AIRCRAFT DERIVED FROM BOEING 707 AIRCRAFT.

       None of the funds authorized to be appropriated under this 
     title may be obligated or expended for the replacement of 
     engines on aircraft of the Department of Defense that are 
     derived from the Boeing 707 aircraft until the Secretary of 
     Defense has submitted the analysis required by section 133 of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 1652).

     SEC. 133. F-22 AIRCRAFT PROGRAM.

       (a) Limitation on Advance Procurement.--(1) Amounts 
     available for the Department of Defense for any fiscal year 
     for the F-22 aircraft program may not be obligated for 
     advance procurement for the six Lot II F-22 aircraft before 
     the date that is 30 days after date that is applicable under 
     paragraph (2) or (3).
       (2) The applicable date for the purposes of paragraph (1) 
     is the date on which the Secretary of Defense submits a 
     certification under subsection (b)(1) unless the Secretary 
     submits a report under subsection (b)(2).
       (3) If the Secretary submits a report under subsection 
     (b)(2), the applicable date for the purposes of paragraph (1) 
     is the later of--
       (A) the date on which the Secretary of Defense submits the 
     report; or
       (B) the date on which the Director of Operational Test and 
     Evaluation submits the certification required under 
     subsection (c).
       (b) Certification by Secretary of Defense.--(1) Upon the 
     completion of 433 hours of flight testing of F-22 flight test 
     vehicles, the Secretary of Defense shall submit to the 
     congressional defense committees a certification of the 
     completion of that amount of flight testing. A certification 
     is not required under this paragraph if the Secretary submits 
     a report under paragraph (2).
       (2) If the Secretary determines that a number of hours of 
     flight testing of F-22 flight test vehicles less than 433 
     hours provides the Defense Acquisition Board with a 
     sufficient basis for deciding to proceed into production of 
     Lot II F-22 aircraft, the Secretary may submit a report to 
     the congressional defense committees upon the completion of 
     that lesser number of hours of flight testing. A report under 
     this paragraph shall contain the following:
       (A) A certification of the number of hours of flight 
     testing completed.
       (B) The reasons for the Secretary's determination that the 
     lesser number of hours is a sufficient basis for a decision 
     by the board.
       (C) A discussion of the extent to which the Secretary's 
     determination is consistent with each decision made by the 
     Defense Acquisition Board since January 1997 in the case of a 
     major aircraft acquisition program that the amount of flight 
     testing completed for the program was sufficient or not 
     sufficient to justify a decision to proceed into low-rate 
     initial production.
       (D) A determination by the Secretary that it is more 
     financially advantageous for the Department to proceed into 
     production of Lot II F-22 aircraft than to delay production 
     until completion of 433 hours of flight testing, together 
     with the reasons for that determination.
       (c) Certification by the Director of Operational Test and 
     Evaluation.--Upon the completion of 183 hours of the flight 
     testing of F-22 flight test vehicles provided for in the test 
     and evaluation master plan for the F-22 aircraft program, as 
     in effect on October 1, 1997, the Director of Operational 
     Test and Evaluation shall submit to the congressional defense 
     committees a certification of the completion of that flight 
     testing.

     SEC. 134. C-130J AIRCRAFT PROGRAM.

       Not later than March 1, 1999, the Secretary of Defense 
     shall review the C-130J aircraft program and submit a report 
     on the program to the congressional defense committees. The 
     report shall include at least the following:
       (1) A discussion of the testing planned and the testing 
     conducted under the program, including--
       (A) the testing schedule intended at the beginning of the 
     program;
       (B) the testing schedule as of when the testing commenced; 
     and
       (C) an explanation of the time taken for the testing.
       (2) The cost and schedule of the program, including--
       (A) whether the Department has exercised or plans to 
     exercise contract options for fiscal years 1996, 1997, 1998, 
     and 1999;
       (B) when the Department expects the aircraft to be 
     delivered and how the delivery dates compare to the delivery 
     dates specified in the contract;
       (C) whether the Department expects to make any modification 
     to the negotiated contract price for these aircraft, and the 
     amount and basis for any such modification; and
       (D) whether the Department expects the reported delays and 
     overruns in the development of the aircraft to have any other 
     impact on the cost, schedule, or performance of the aircraft.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $4,838,145,000.
       (2) For the Navy, $8,219,997,000.
       (3) For the Air Force, $13,673,993,000.
       (4) For Defense-wide activities, $9,583,822,000, of which--
       (A) $249,106,000 is authorized for the activities of the 
     Director, Test and Evaluation; and
       (B) $25,245,000 is authorized for the Director of 
     Operational Test and Evaluation.

     SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

       (a) Fiscal Year 1999.--Of the amounts authorized to be 
     appropriated by section 201, $4,186,817,000 shall be 
     available for basic research and applied research projects.
       (b) Basic Research and Applied Research Defined.--For 
     purposes of this section, the term ``basic research and 
     applied research'' means work funded in program elements for 
     defense research and development under Department of Defense 
     category 6.1 or 6.2.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. CRUSADER SELF-PROPELLED ARTILLERY SYSTEM PROGRAM.

       (a) Limitation.--Of the amount authorized to be 
     appropriated for the Army pursuant to section 201(1), not 
     more than $223,000,000 may be obligated for the Crusader 
     self-propelled artillery system program until 30 days after 
     the date on which the Secretary of the Army submits the 
     report required under subsection (b).
       (b) Requirement for Report.--The Secretary of the Army 
     shall submit to the congressional defense committees a report 
     on the Crusader self-propelled artillery system. The report 
     shall include the following:
       (1) An assessment of the risks associated with the current 
     Crusader program technology.
       (2) The total requirements for the Crusader system, taking 
     into consideration revisions in force structure resulting 
     from the redesign of heavy and light divisions to achieve a 
     force structure known as the Army After Next.
       (3) The potential for reducing the weight of the Crusader 
     system by as much as 50 percent.
       (4) The potential for using alternative propellants for the 
     artillery projectile for the Crusader system and the effects 
     on the overall program schedule that would result from taking 
     the actions and time necessary to develop mature technologies 
     for alternative propellants.
       (5) An analysis of the costs and benefits of delaying 
     procurement of Crusader to avoid affordability issues 
     associated with the current schedule and to allow for 
     maturation of weight and propellant technologies.
       (c) Submission of Report.--The Secretary of the Army shall 
     submit the report not later than March 1, 1999.

     SEC. 212. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

       (a) Amount for New Technologies.--Of the amounts authorized 
     to be appropriated under section 201(2) for aircraft carrier 
     system development, $50,000,000 shall be available only for 
     research, development, test, and evaluation, and for 
     acquisition, of technologies described in subsection (b) for 
     use in the CVN-77 nuclear aircraft carrier program.
       (b) Technologies.--The technologies for which amounts are 
     available under subsection (a) are technologies that are 
     designed--
       (1) for a transition from the CVN-77 aircraft carrier 
     program to the CV(X) aircraft carrier program; and
       (2) for--
       (A) demonstrating enhanced capabilities for the CV(X) 
     aircraft carrier program; or
       (B) mitigating the cost or technical risks of that program.

     SEC. 213. UNMANNED AERIAL VEHICLE PROGRAMS.

       (a) Termination of Dark Star Program.--The Secretary of 
     Defense shall terminate the Dark Star unmanned aerial vehicle 
     program. Except as provided in subsection (b), funds 
     available for that program may be obligated after the date of 
     the enactment of this Act only for costs necessary for 
     terminating the program.
       (b) Global Hawk Program.--Of the unobligated balance of the 
     funds available for the Dark Star unmanned aerial vehicle 
     program, $32,500,000 shall be available for the procurement 
     of three Global Hawk unmanned aerial vehicles. However, none 
     of the funds made available for the Global Hawk unmanned 
     aerial vehicle program under the preceding sentence may be 
     obligated or expended for that program until phase II testing 
     of the Global Hawk unmanned aerial vehicle has been 
     completed.

     SEC. 214. AIRBORNE LASER PROGRAM.

       (a) Findings.--Congress makes the following findings:
       (1) The development plan of the Department of Defense for 
     the Airborne Laser Program does not include the basic 
     validation of certain key technologies until 2002, which is 
     shortly before the program is scheduled to

[[Page S7474]]

     enter the engineering and manufacturing development phase of 
     development.
       (2) It is possible that the technical risk of the Airborne 
     Laser Program could be substantially reduced by restructuring 
     the program to include a technology demonstration using a low 
     power laser device to collect optical data in an 
     operationally representative environment.
       (3) Department of Defense officials are currently planning 
     to have expended approximately $1,300,000,000 on the Airborne 
     Laser Program by the end of fiscal year 2002, and a total of 
     $6,300,000,000 by the end of fiscal year 2008 for the 
     development of the system and the procurement of seven 
     airborne laser aircraft.
       (4) Due to the likely vulnerability of an airborne laser 
     system to air defense threats, the limited lethal range of 
     the laser device, and other operational limitations of the 
     system, the utility of the airborne laser system will be 
     severely restricted under a wide range of operational 
     scenarios.
       (b) Assessment of Technical and Operational Limitations.--
     The Secretary of Defense shall conduct an assessment of the 
     technical obstacles and operational shortcomings expected for 
     the Airborne Laser Program. In conducting the assessment, the 
     Secretary shall--
       (1) require the Panel on Reducing Risk in Ballistic Missile 
     Defense Test Programs to evaluate the adequacy of the test 
     program for the Airborne Laser Program; and
       (2) establish an independent team of persons from outside 
     the Department of Defense who are experts in relevant fields 
     to review the operational limitations and issues associated 
     with the Airborne Laser Program.
       (c) Report on Assessment.--Not later than March 15, 1999, 
     the Secretary shall submit a report on the assessment to 
     Congress. The report shall include the Secretary's findings 
     and any recommendations that the Secretary considers 
     appropriate.
       (d) Funding for Program.--Of the amount authorized to be 
     appropriated under section 201(3), $195,219,000 shall be 
     available for the Airborne Laser Program.
       (e) Limitation.--Of the amount made available pursuant to 
     subsection (d), not more than $150,000,000 may be obligated 
     until 30 days after the Secretary submits the report required 
     under subsection (c).

     SEC. 215. ENHANCED GLOBAL POSITIONING SYSTEM PROGRAM.

       (a) Findings.--Congress makes the following findings:
       (1) Section 152(b) of the National Defense Authorization 
     Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1578) 
     prohibits the obligation of funds, after September 30, 2000, 
     to modify or procure any Department of Defense aircraft, 
     ship, armored vehicle, or indirect-fire weapon system that is 
     not equipped with a Global Positioning System receiver.
       (2) Section 279(b) of the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 243) 
     requires the Secretary of Defense to prepare a plan for 
     enhancing the Global Positioning System and to provide in 
     that plan for--
       (A) the development of capabilities to deny hostile 
     military forces the ability to use the Global Positioning 
     System without hindering the ability of United States 
     military forces and civil users to have access to and use of 
     the system; and
       (B) the development and acquisition of receivers for the 
     Global Positioning System and other techniques for weapons 
     and weapon systems that provide substantially improved 
     resistance to jamming and other forms of electronic 
     interference or disruption.
       (3) Section 2281 of title 10, United States Code, requires 
     the Secretary of Defense--
       (A) to develop appropriate measures for preventing hostile 
     use of the Global Positioning System so as to make it 
     unnecessary for the Secretary to use the selective 
     availability feature of the system continuously while not 
     hindering the use of the Global Positioning System by the 
     United States and its allies for military purposes;
       (B) to ensure that the Armed Forces of the United States 
     have the capability to use the Global Positioning System 
     effectively despite hostile attempts to prevent the use of 
     the system by such forces; and
       (C) to develop measures for preventing hostile use of the 
     Global Positioning System in a particular area without 
     hindering peaceful civil use of the system elsewhere.
       (b) Policy on Priority for Development of Enhanced GPS 
     System.--The development of an enhanced Global Positioning 
     System is an urgent national security priority.
       (c) Development Required.--To fulfill the requirements 
     described in subsection (a), the Secretary of Defense shall 
     develop an enhanced Global Positioning System in accordance 
     with the priority declared in subsection (b). The enhanced 
     Global Positioning System shall consist of the following 
     elements:
       (1) An evolved satellite system that includes dynamic 
     frequency reconfiguration and regional-level directional 
     signal enhancements.
       (2) Enhanced receivers and user equipment that are capable 
     of providing military users with direct access to encrypted 
     Global Positioning System signals.
       (3) To the extent funded by the Secretary of 
     Transportation, additional civil frequencies and other 
     enhancements for civil users.
       (d) Sense of Congress Regarding Funding.--It is the sense 
     of Congress that--
       (1) the Secretary of Defense should ensure that the future-
     years defense program provides for sufficient funding to 
     develop and deploy an enhanced Global Positioning System 
     system in accordance with the priority declared in subsection 
     (b); and
       (2) the Secretary of Transportation should provide 
     sufficient funding to support additional civil frequencies 
     for the Global Positioning System and other enhancements of 
     the system for civil users.
       (e) Plan for Development of Enhanced Global Positioning 
     System.--Not later than April 15, 1999, the Secretary of 
     Defense shall submit to Congress a plan for carrying out the 
     requirements of subsection (c).
       (f) Delayed Effective Date for Limitation on Procurement of 
     Systems Not GPS-Equipped.--Section 152(b) of the National 
     Defense Authorization Act for Fiscal Year 1994 (Public Law 
     103-160; 107 Stat. 1578) is amended by striking out ``2000'' 
     and inserting in lieu thereof ``2005''.
       (g) Funding From Authorized Appropriations for Fiscal Year 
     1999.--Of the amounts authorized to be appropriated under 
     section 201(3), $44,000,000 shall be available to establish 
     and carry out an enhanced Global Positioning System program.

     SEC. 216. MANUFACTURING TECHNOLOGY PROGRAM.

       (a) Competition and Cost Sharing.--Subsection (d) of 
     section 2525 of title 10, United States Code, is amended by 
     striking out paragraphs (2), (3), and (4) and inserting in 
     lieu thereof the following:
       ``(2) Except as provided in paragraph (3), the costs of a 
     project carried out under the program shall be shared by the 
     Department of Defense and the other parties to the grant, 
     contract, cooperative agreement, or other transaction 
     involved if any results of the project are likely to have an 
     immediate and direct commercial application. The cost share--
       ``(A) in the case of a grant, contract, cooperative 
     agreement, or other transaction that is awarded using a 
     competitive selection process, shall be the cost share 
     proposed in the application or offer selected for the award; 
     or
       ``(B) in a case in which there is only one applicant or 
     offeror, shall be the cost share negotiated with the 
     applicant or offeror that provides the best value for the 
     Government.
       ``(3)(A) Cost-sharing is not required of the non-Federal 
     Government parties to a grant, contract, cooperative 
     agreement, or other transaction under paragraph (2) if the 
     project is determined as being sufficiently high risk to 
     discourage cost-sharing by non-Federal Government sources.
       ``(B) A determination under subparagraph (A) that cost-
     sharing is not required in the case of a particular grant, 
     contract, cooperative agreement or other transaction shall be 
     made by--
       ``(i) the Secretary of the military department awarding the 
     grant or entering into the contract, cooperative agreement, 
     or other transaction; or
       ``(ii) the Secretary of Defense for any other grant, 
     contract, cooperative agreement, or transaction.
       ``(C) The transaction file for a case in which cost-sharing 
     is determined as not being required shall include written 
     documentation of the reasons for the determination.''.
       (b) Five-Year Plan.--Subsection (e)(2) of such section is 
     amended to read as follows:
       ``(2) The plan shall include the following:
       ``(A) An assessment of the effectiveness of the program.
       ``(B) An assessment of the extent to which the costs of 
     projects are being shared by the following:
       ``(i) Commercial enterprises in the private sector.
       ``(ii) Department of Defense program offices, including 
     weapon system program offices.
       ``(iii) Departments and agencies of the Federal Government 
     outside the Department of Defense.
       ``(iv) Institutions of higher education.
       ``(v) Other institutions not operated for profit.
       ``(vi) Other sources.''.

     SEC. 217. AUTHORITY FOR USE OF MAJOR RANGE AND TEST FACILITY 
                   INSTALLATIONS BY COMMERCIAL ENTITIES.

       (a) Permanent Authority.--Subsection (g) of section 2681 of 
     title 10, United States Code, is repealed.
       (b) Repeal of Executed Reporting Requirement.--Subsection 
     (h) of such section is repealed.

     SEC. 218. EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN 
                   PROTOTYPE PROJECTS.

       Section 845(c) of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 
     note) is amended by striking out ``September 30, 1999'' and 
     inserting in lieu thereof ``September 30, 2001''.

     SEC. 219. NATO ALLIANCE GROUND SURVEILLANCE CONCEPT 
                   DEFINITION.

       Amounts authorized to be appropriated under subtitle A are 
     available for a NATO alliance ground surveillance concept 
     definition that is based on the Joint Surveillance Target 
     Attack Radar System (Joint STARS) Radar Technology Insertion 
     Program (RTIP) sensor of the United States, as follows:
       (1) Of the amount authorized to be appropriated under 
     section 201(1), $6,400,000.
       (2) Of the amount authorized to be appropriated under 
     section 201(3), $3,500,000.

     SEC. 220. NATO COMMON-FUNDED CIVIL BUDGET.

       Of the amount authorized to be appropriated by section 
     201(1), $750,000 shall be available for contributions for the 
     common-funded Civil Budget of NATO.

[[Page S7475]]

     SEC. 221. PERSIAN GULF ILLNESSES.

       (a) Additional Amount for Persian Gulf Illnesses.--The 
     total amount authorized to be appropriated under this title 
     for research and development relating to Persian Gulf 
     illnesses is the total amount authorized to be appropriated 
     for such purpose under the other provisions of this title 
     plus $10,000,000.
       (b) Reduced Amount for Army Commercial Operations and 
     Support Savings Program.--Of the amount authorized to be 
     appropriated under section 201(1), $23,600,000 shall be 
     available for the Army Commercial Operations and Support 
     Savings Program.

     SEC. 222. DOD/VA COOPERATIVE RESEARCH PROGRAM.

       (a) Availability of Funds.--(1) The amount authorized to be 
     appropriated by section 201(4) is hereby increased by 
     $10,000,000.
       (2) Of the amount authorized to be appropriated by section 
     201(4), as increased by paragraph (1), $10,000,000 shall be 
     available for the DOD/VA Cooperative Research Program.
       (b) Offset.--(1) The amount authorized to be appropriated 
     by section 201(2) is hereby decreased by $10,000,000.
       (2) Of the amount authorized to be appropriated by section 
     201(2), as decreased by paragraph (1), not more than 
     $18,500,000 shall be available for the Commercial Operations 
     and Support Savings Program.
       (c) Executive Agent.--The Secretary of Defense, acting 
     through the Army Medical Research and Materiel Command and 
     the Naval Operational Medicine Institute, shall be the 
     executive agent for the utilization of the funds made 
     available by subsection (a).

     SEC. 223. LOW COST LAUNCH DEVELOPMENT PROGRAM.

       Of the total amount authorized to be appropriated under 
     section 201(3), $5,000,000 is available for the Low Cost 
     Launch Development Program.

                       Subtitle C--Other Matters

     SEC. 231. POLICY WITH RESPECT TO BALLISTIC MISSILE DEFENSE 
                   COOPERATION.

       As the United States proceeds with efforts to develop 
     defenses against ballistic missile attack, it should seek to 
     foster a climate of cooperation with Russia on matters 
     related to missile defense. In particular, the United States 
     and its NATO allies should seek to cooperate with Russia in 
     such areas as early warning.

     SEC. 232. REVIEW OF PHARMACOLOGICAL INTERVENTIONS FOR 
                   REVERSING BRAIN INJURY.

       (a) Review and Report Required.--The Assistant Secretary of 
     Defense for Health Affairs shall review research on 
     pharmacological interventions for reversing brain injury and, 
     not later than March 31, 1999, submit a report on the results 
     of the review to Congress.
       (b) Content of Report.--The report shall include the 
     following:
       (1) The potential for pharmacological interventions for 
     reversing brain injury to reduce mortality and morbidity in 
     cases of head injuries incurred in combat or resulting from 
     exposures to chemical weapons or agents.
       (2) The potential utility of such interventions for the 
     Armed Forces.
       (3) A conclusion regarding whether funding for research on 
     such interventions should be included in the budget for the 
     Department of Defense for fiscal year 2000.

     SEC. 233. LANDMINES.

       (a) Availability of Funds.--(1) Of the amounts authorized 
     to be appropriated in section 201, $17,200,000 shall be 
     available for activities relating to the identification, 
     adaptation, modification, research, and development of 
     existing and new tactics, technologies, and operational 
     concepts that--
       (A) would provide a combat capability that is comparable to 
     the combat capability provided by anti-personnel landmines, 
     including anti-personnel landmines used in mixed mine 
     systems; and
       (B) comply with the Convention on the Prohibition of the 
     Use, Stockpiling, Production and Transfer of Anti-Personnel 
     Mines and on Their Destruction.
       (2) The amount available under paragraph (1) shall be 
     derived as follows:
       (A) $12,500,000 shall be available from amounts authorized 
     to be appropriated by section 201(1).
       (B) $4,700,000 shall be available from amounts authorized 
     to be appropriated by section 201(4).
       (b) Studies.--(1) Not later than 30 days after the date of 
     enactment of this Act, the Secretary of Defense shall enter 
     into a contract with each of two appropriate scientific 
     organizations for purposes of identifying existing and new 
     tactics, technologies, and concepts referred to in subsection 
     (a).
       (2) Each contract shall require the organization concerned 
     to submit a report to the Secretary and to Congress, not 
     later than one year after the execution of such contract, 
     describing the activities under such contract and including 
     recommendations with respect to the adaptation, modification, 
     and research and development of existing and new tactics, 
     technologies, and concepts identified under such contract.
       (3) Amounts available under subsection (a) shall be 
     available for purposes of the contracts under this 
     subsection.
       (c) Reports.--Not later than April 1 of each of 1999 
     through 2001, the Secretary shall submit to the congressional 
     defense committees a report describing the progress made in 
     identifying and deploying tactics, technologies, and concepts 
     referred to in subsection (a).
       (d) Definitions.--In this section:
       (1) Anti-personnel landmine.--The term ``anti-personnel 
     landmine'' has the meaning given the term ``anti-personnel 
     mine'' in Article 2 of the Convention on the Prohibition of 
     the Use, Stockpiling, Production and Transfer of Anti-
     Personnel Mines and on Their Destruction.
       (2) Mixed mine system.--The term ``mixed mine system'' 
     includes any system in which an anti-vehicle landmine or 
     other munition is constructed with or used with one or more 
     anti-personnel landmines, but does not include an anti-
     handling device as that term is defined in Article 2 of the 
     Convention on the Prohibition of the Use, Stockpiling, 
     Production and Transfer of Anti-Personnel Mines and on Their 
     Destruction.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       (a) Amounts Authorized.--Funds are hereby authorized to be 
     appropriated for fiscal year 1999 for the use of the Armed 
     Forces and other activities and agencies of the Department of 
     Defense for expenses, not otherwise provided for, for 
     operation and maintenance, in amounts as follows:
       (1) For the Army, $17,395,563,000.
       (2) For the Navy, $22,001,302,000.
       (3) For the Marine Corps, $2,621,703,000.
       (4) For the Air Force, $19,213,404,000.
       (5) For the Special Operations Command, $1,251,503,000.
       (6) For Defense-wide activities, $9,025,598,000.
       (7) For the Army Reserve, $1,217,622,000.
       (8) For the Naval Reserve, $943,639,000.
       (9) For the Marine Corps Reserve, $134,593,000.
       (10) For the Air Force Reserve, $1,759,696,000.
       (11) For the Army National Guard, $2,476,815,000.
       (12) For the Air National Guard, $3,113,933,000.
       (13) For the Defense Inspector General, $130,764,000.
       (14) For the United States Court of Appeals for the Armed 
     Forces, $7,324,000.
       (15) For Environmental Restoration, Army, $370,640,000.
       (16) For Environmental Restoration, Navy, $274,600,000.
       (17) For Environmental Restoration, Air Force, 
     $372,100,000.
       (18) For Environmental Restoration, Defense-wide, 
     $23,091,000.
       (19) For Environmental Restoration, Formerly Used Defense 
     Sites, $195,000,000.
       (20) For Overseas Humanitarian, Demining, and CINC 
     Initiatives, $50,000,000.
       (21) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $727,582,000.
       (22) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $15,000,000.
       (23) For Medical Programs, Defense, $9,653,435,000.
       (24) For Cooperative Threat Reduction programs, 
     $440,400,000.
       (25) For Overseas Contingency Operations Transfer Fund, 
     $746,900,000.
       (26) For Impact Aid, $35,000,000.
       (b) General Limitation.--Notwithstanding paragraphs (1) 
     through (25) of subsection (a), the total amount authorized 
     to be appropriated for fiscal year 1999 under those 
     paragraphs is $93,875,207,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1999 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     providing capital for working capital and revolving funds in 
     amounts as follows:
       (1) For the Defense Working Capital Funds, Air Force, 
     $30,800,000.
       (2) For Defense Working-Capital Fund, Defense-wide, 
     $63,700,000.
       (3) For the National Defense Sealift Fund, $669,566,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 1999 from the Armed Forces Retirement Home Trust Fund 
     the sum of $70,745,000 for the operation of the Armed Forces 
     Retirement Home, including the United States Soldiers' and 
     Airmen's Home and the Naval Home.

     SEC. 304. TRANSFER FROM THE NATIONAL DEFENSE STOCKPILE 
                   TRANSACTION FUND.

       (a) Transfer Authority.--To the extent provided in 
     appropriations Acts, not more than $150,000,000 is authorized 
     to be transferred from the National Defense Stockpile 
     Transaction Fund to operation and maintenance accounts for 
     fiscal year 1999 in amounts as follows:
       (1) For the Army, $50,000,000.
       (2) For the Navy, $50,000,000.
       (3) For the Air Force, $50,000,000.
       (b) Treatment of Transfers.--Amounts transferred under this 
     section--
       (1) shall be merged with, and be available for the same 
     purposes and the same period as, the amounts in the accounts 
     to which transferred; and
       (2) may not be expended for an item that has been denied 
     authorization of appropriations by Congress.
       (c) Relationship to Other Transfer Authority.--The transfer 
     authority provided in this section is in addition to the 
     transfer authority provided in section 1001.

[[Page S7476]]

    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 311. SPECIAL OPERATIONS COMMAND COUNTERPROLIFERATION AND 
                   COUNTERTERRORISM ACTIVITIES.

       Of the amount authorized to be appropriated under section 
     301(a)(5), the $18,500,000 available for the Special 
     Operations Command that is not needed for the operation of 
     six of the patrol coastal craft of the Department of Defense 
     in the Caribbean Sea and Eastern Pacific Ocean in support of 
     the drug interdiction efforts of the United States Southern 
     Command by reason of section 331 shall be available for 
     increased training and related operations in support of that 
     command's counterproliferation of weapons of mass destruction 
     and the command's counterterrorism activities. The amount 
     available under the preceding sentence is in addition to 
     other funds authorized to be appropriated under section 
     301(a)(5) for the Special Operations Command for such 
     purposes.

     SEC. 312. TAGGING SYSTEM FOR IDENTIFICATION OF HYDROCARBON 
                   FUELS USED BY THE DEPARTMENT OF DEFENSE.

       (a) Authority To Conduct Pilot Program.--The Secretary of 
     Defense may conduct a pilot program using existing technology 
     to determine--
       (1) the feasibility of tagging hydrocarbon fuels used by 
     the Department of Defense for the purposes of analyzing and 
     identifying such fuels;
       (2) the deterrent effect of such tagging on the theft and 
     misuse of fuels purchased by the Department; and
       (3) the extent to which such tagging assists in determining 
     the source of surface and underground pollution in locations 
     having separate fuel storage facilities of the Department and 
     of civilian companies.
       (b) System Elements.--The tagging system under the pilot 
     program shall have the following characteristics:
       (1) The tagging system does not harm the environment.
       (2) Each chemical used in the tagging system is--
       (A) approved for use under the Toxic Substances Control Act 
     (15 U.S.C. 2601 et seq.); and
       (B) substantially similar to the fuel to which added, as 
     determined in accordance with criteria established by the 
     Environmental Protection Agency for the introduction of 
     additives into hydrocarbon fuels.
       (3) The tagging system permits a determination if a tag is 
     present and a determination if the concentration of a tag has 
     changed in order to facilitate identification of tagged fuels 
     and detection of dilution of tagged fuels.
       (4) The tagging system does not impair or degrade the 
     suitability of tagged fuels for their intended use.
       (c) Report.--Not later than 30 days after the completion of 
     the pilot program, the Secretary shall submit to Congress a 
     report setting forth the results of the pilot program and 
     including any recommendations for legislation relating to the 
     tagging of hydrocarbon fuels by the Department that the 
     Secretary considers appropriate.
       (d) Funding.--Of the amounts authorized to be appropriated 
     under section 301(a)(6) for operation and maintenance for 
     defense-wide activities, not more than $5,000,000 shall be 
     available for the pilot program.

     SEC. 313. PILOT PROGRAM FOR ACCEPTANCE AND USE OF LANDING 
                   FEES CHARGED FOR USE OF DOMESTIC MILITARY 
                   AIRFIELDS BY CIVIL AIRCRAFT.

       (a) Pilot Program Authorized.--The Secretary of each 
     military department may carry out a pilot program to 
     demonstrate the use of landing fees as a source of funding 
     for the operation and maintenance of airfields of the 
     department.
       (b) Imposition of Landing Fees.--Under a pilot program 
     carried out under this section, the Secretary of a military 
     department may prescribe and impose landing fees for use of 
     any military airfield of the department in the United States 
     by civil aircraft during fiscal years 1999 and 2000. No fee 
     may be charged under the pilot program for a landing after 
     September 30, 2000.
       (c) Use of Proceeds.--Amounts received for a fiscal year in 
     payment of landing fees imposed under the pilot program for 
     use of a military airfield shall be credited to the 
     appropriation that is available for that fiscal year for the 
     operation and maintenance of the military airfield, shall be 
     merged with amounts in the appropriation to which credited, 
     and shall be available for that military airfield for the 
     same period and purposes as the appropriation is available.
       (d) Report.--Not later than March 31, 2000, the Secretary 
     of Defense shall submit to Congress a report on the pilot 
     programs carried out under this section by the Secretaries of 
     the military departments. The report shall specify the 
     amounts of fees received and retained by each military 
     department under the pilot program as of December 31, 1999.

     SEC. 314. NATO COMMON-FUNDED MILITARY BUDGET.

       Of the amount authorized to be appropriated by section 
     30(a)(1), $227,377,000 shall be available for contributions 
     for the common-funded Military Budget of NATO.

                  Subtitle C--Environmental Provisions

     SEC. 321. TRANSPORTATION OF POLYCHLORINATED BIPHENYLS FROM 
                   ABROAD FOR DISPOSAL IN THE UNITED STATES.

       (a) Authority.--Chapter 157 of title 10, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 2646. Transportation of polychlorinated biphenyls from 
       abroad; disposal

       ``(a) Authority To Transport.--(1) Subject to paragraph 
     (2), the Secretary of the Defense and the Secretaries of the 
     military departments may provide for the transportation into 
     the customs territory of the United States of polychlorinated 
     biphenyls generated by or under the control of the Department 
     of Defense for purposes of their disposal, treatment, or 
     storage in the customs territory of the United States.
       ``(2) Polychlorinated biphenyls may be transported into the 
     customs territory of the United States under paragraph (1) 
     only if the Administrator of the Environmental Protection 
     Agency determines that the transportation will not result in 
     an unreasonable risk of injury to health or the environment.
       ``(b) Disposal.--(1) The disposal, treatment, and storage 
     of polychlorinated biphenyls transported into the customs 
     territory of the United States under subsection (a) shall be 
     governed by the provisions of the Toxic Substances Control 
     Act (15 U.S.C. 2601 et seq.).
       ``(2) A chemical waste landfill may not be used for the 
     disposal, treatment, or storage of polychlorinated biphenyls 
     transported into the customs territory of the United States 
     under subsection (a) unless the landfill meets all of the 
     technical requirements specified in section 761.75(b)(3) of 
     title 40, Code of Federal Regulations, as in effect on the 
     date that was one year before the date of enactment of the 
     Strom Thurmond National Defense Authorization Act for Fiscal 
     Year 1999.
       ``(c) Customs Territory of the United States Defined.--In 
     this section, the term `customs territory of the United 
     States' has the meaning given that term in General Note 2. of 
     the Harmonized Tariff Schedule of the United States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of that chapter is amended by adding at the end the 
     following:

``2646. Transportation of polychlorinated biphenyls from abroad; 
              disposal.''.

     SEC. 322. MODIFICATION OF DEADLINE FOR SUBMITTAL TO CONGRESS 
                   OF ANNUAL REPORTS ON ENVIRONMENTAL ACTIVITIES.

       Section 2706 of title 10, United States Code, is amended by 
     striking out ``not later than 30 days'' each place it appears 
     in subsections (a), (b), (c), and (d) and inserting in lieu 
     thereof ``not later than 45 days''.

     SEC. 323. SUBMARINE SOLID WASTE CONTROL.

       (a) Solid Waste Discharge Requirements.--Subsection (c)(2) 
     of section 3 of the Act to Prevent Pollution from Ships (33 
     U.S.C. 1902) is amended--
       (1) in subparagraph (A), by adding at the end the 
     following:
       ``(iii) With regard to submersibles, non-plastic garbage 
     that has been compacted and weighted to ensure negative 
     buoyancy.''; and
       (2) in subparagraph (B)(ii), by striking out ``subparagraph 
     (A)(ii)'' and inserting in lieu thereof ``clauses (ii) and 
     (iii) of subparagraph (A)''.
       (b) Conforming Amendment.--Subsection (e)(3)(A) of that 
     section is amended by striking out ``garbage that contains 
     more than the minimum amount practicable of''.

     SEC. 324. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER 
                   CERCLA.

       The Secretary of Defense may pay, from amounts in the 
     Department of Defense Base Closure Account 1990 established 
     by section 2906(a)(1) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note), not more than $15,000 as 
     payment of pay stipulated civil penalties assessed under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) against 
     McClellan Air Force Base, California.

     SEC. 325. AUTHORITY TO PAY NEGOTIATED SETTLEMENT FOR 
                   ENVIRONMENTAL CLEANUP OF FORMERLY USED DEFENSE 
                   SITES IN CANADA.

       (a) Findings.--Congress makes the following findings with 
     respect to the authorization of payment of settlement with 
     Canada in subsection (b) regarding environmental cleanup at 
     formerly used defense sites in Canada:
       (1) A unique and longstanding national security alliance 
     exists between the United States and Canada.
       (2) The sites covered by the settlement were formerly used 
     by the United States and Canada for their mutual defense.
       (3) There is no formal treaty or international agreement 
     between the United States and Canada regarding the 
     environmental cleanup of the sites.
       (4) Environmental contamination at some of the sites could 
     pose a substantial risk to the health and safety of the 
     United States citizens residing in States near the border 
     between the United States and Canada.
       (5) The United States and Canada reached a negotiated 
     agreement for an ex-gratia reimbursement of Canada in full 
     satisfaction of claims of Canada relating to environmental 
     contamination which agreement was embodied in an exchange of 
     Notes between the Government of the United States and the 
     Government of Canada.
       (6) There is a unique factual basis for authorizing a 
     reimbursement of Canada for environmental cleanup at sites in 
     Canada after the United States departure from such sites.

[[Page S7477]]

       (7) The basis for and authorization of such reimbursement 
     does not extend to similar claims by other nations.
       (8) The Government of Canada is committed to spending the 
     entire $100,000,000 of the reimbursement authorized in 
     subsection (b) in the United States, which will benefit 
     United States industry and United States workers.
       (b) Authority To Make Payments.--(1) Subject to paragraph 
     (3), the Secretary of Defense may, using funds specified 
     under subsection (c), make a payment described in paragraph 
     (2) in each of fiscal years 1999 through 2008 for purposes of 
     the ex-gratia reimbursement of Canada in full satisfaction of 
     any and all claims asserted against the United States by 
     Canada for environmental cleanup of sites in Canada that were 
     formerly used for the mutual defense of the United States and 
     Canada.
       (2) A payment referred to in paragraph (1) is a payment of 
     $10,000,000, in constant fiscal year 1996 dollars, into the 
     Foreign Military Sales Trust Account for purposes of Canada.
       (3) A payment may be made under paragraph (1) in any fiscal 
     year after fiscal year 1999 only if the Secretary of Defense 
     submits to Congress with the budget for such fiscal year 
     under section 1105 of title 31, United States Code, evidence 
     that the cumulative amount expended by the Government of 
     Canada for environmental cleanup activities in Canada during 
     any fiscal years before such fiscal year in which a payment 
     under that paragraph was authorized was an amount equal to or 
     greater than the aggregate amount of the payments under that 
     paragraph during such fiscal years.
       (c) Source of Funds.--A payment may be made under 
     subsection (b) in a fiscal year from amounts appropriated 
     pursuant to the authorization of appropriations for the 
     Department of Defense for such fiscal year for Operation and 
     Maintenance, Defense-Wide.

     SEC. 326. SETTLEMENT OF CLAIMS OF FOREIGN GOVERNMENTS FOR 
                   ENVIRONMENTAL CLEANUP OF OVERSEAS SITES 
                   FORMERLY USED BY THE DEPARTMENT OF DEFENSE.

       (a) Notice of Negotiations.--The President shall notify 
     Congress before entering into any negotiations for the ex-
     gratia settlement of the claims of a government of another 
     country against the United States for environmental cleanup 
     of sites in that country that were formerly used by the 
     Department of Defense.
       (b) Authorization Required for Use Funds for Payment of 
     Settlement.--Notwithstanding any other provision of law, no 
     funds may be utilized for any payment under an ex-gratia 
     settlement of any claims described in subsection (a) unless 
     the use of the funds for that purpose is specifically 
     authorized by law, treaty, or international agreement.

     SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.

       (a) Findings.--Congress makes the following findings:
       (1) The Secretary of Defense has developed a program to 
     address environmental matters relating to the military 
     activities of the Department of Defense in the Arctic region. 
     The program is known as the ``Arctic Military Environmental 
     Cooperation Program''.
       (2) The Secretary has carried out the Arctic Military 
     Environmental Cooperation Program using funds appropriated 
     for Cooperative Threat Reduction programs.
       (b) Activities Under Program.--(1) Subject to paragraph 
     (2), activities under the Arctic Military Environmental 
     Cooperation Program shall include cooperative activities on 
     environmental matters in the Arctic region with the military 
     departments and agencies of other countries, including the 
     Russian Federation.
       (2) Activities under the Arctic Military Environmental 
     Cooperation Program may not include any activities for 
     purposes for which funds for Cooperative Threat Reduction 
     programs have been denied, including the purposes for which 
     funds were denied by section 1503 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2732).
       (c) Availability of Fiscal Year 1999 Funds.--(1) Of the 
     amount authorized to be appropriated by section 301(a)(6), 
     $4,000,000 shall be available for carrying out the Arctic 
     Military Environmental Program.
       (2) Amounts available for the Arctic Military Environmental 
     Cooperation Program under paragraph (1) may not be obligated 
     or expended for that Program until 45 days after the date on 
     which the Secretary of Defense submits to the congressional 
     defense committees a plan for the Program under paragraph 
     (3).
       (3) The plan for the Arctic Military Environmental 
     Cooperation Program under this paragraph shall include the 
     following:
       (A) A statement of the overall goals and objectives of the 
     Program.
       (B) A statement of the proposed activities under the 
     Program and the relationship of such activities to the 
     national security interests of the United States.
       (C) An assessment of the compatibility of the activities 
     set forth under subparagraph (B) with the purposes of the 
     Cooperative Threat Reduction programs of the Department of 
     Defense (including with any prohibitions and limitations 
     applicable to such programs).
       (D) An estimate of the funding to be required and requested 
     in future fiscal years for the activities set forth under 
     subparagraph (B).
       (E) A proposed termination date for the Program.

     SEC. 328. SENSE OF SENATE REGARDING OIL SPILL PREVENTION 
                   TRAINING FOR PERSONNEL ON BOARD NAVY VESSELS.

       (a) Findings.--The Senate makes the following findings:
       (1) There have been six significant oil spills in Puget 
     Sound, Washington, in 1998, five at Puget Sound Naval 
     Shipyard (including three from the U.S.S. Kitty Hawk, one 
     from the U.S.S. Carl Vinson, and one from the U.S.S. 
     Sacramento) and one at Naval Station Everett from the U.S.S. 
     Paul F. Foster.
       (2) Navy personnel on board vessels, and not shipyard 
     employees, were primarily responsible for a majority of these 
     oil spills at Puget Sound Naval Shipyard.
       (3) Oil spills have the potential to damage the local 
     environment, killing microscopic organisms, contributing to 
     air pollution, harming plants and marine animals, and 
     increasing overall pollution levels in Puget Sound.
       (b) Sense of Senate.--It is the sense of the Senate that 
     the Secretary of the Navy should take immediate action to 
     significantly reduce the risk of vessel oil spills, including 
     the minimization of fuel oil transfers, the assurance of 
     proper training and qualifications of all Naval personnel in 
     occupations that may contribute to or minimize the risk of 
     shipboard oil spills, and the improvement of liaison with 
     local authorities concerning oil spill prevention and 
     response activities.

                  Subtitle D--Counter-Drug Activities

     SEC. 331. PATROL COASTAL CRAFT FOR DRUG INTERDICTION BY 
                   SOUTHERN COMMAND.

       Of the funds authorized to be appropriated under section 
     301(a)(21), relating to drug interdiction and counter-drug 
     activities, $18,500,000 shall be available for the equipping 
     and operation of six of the Cyclone class coastal defense 
     ships of the Department of Defense in the Caribbean Sea and 
     Eastern Pacific Ocean in support of the drug interdiction 
     efforts of the United States Southern Command.

     SEC. 332. PROGRAM AUTHORITY FOR DEPARTMENT OF DEFENSE SUPPORT 
                   FOR COUNTER-DRUG ACTIVITIES.

       (a) Extension of Authority.--Subsection (a) of section 1004 
     of the National Defense Authorization Act for Fiscal Year 
     1991 (10 U.S.C. 374 note) is amended by striking out 
     ``through 1999'' and inserting in lieu thereof ``through 
     2004''.
       (b) Bases and Facilities Support.--(1) Subsection (b)(4) of 
     such section is amended by inserting ``of the Department of 
     Defense or any Federal, State, local, or foreign law 
     enforcement agency'' after ``counter-drug activities''.
       (2) Section 1004 of such Act is further amended by adding 
     at the end the following:
       ``(h) Congressional Notification of Facilities Projects.--
     (1) Not later than 21 days before obligating funds for 
     beginning the work on a project described in paragraph (2), 
     the Secretary of Defense shall submit to the congressional 
     defense committees a notification of the project, including 
     the scope and estimated total cost of the project.
       ``(2) Paragraph (1) applies to a project for the 
     modification or repair of a Department of Defense facility 
     for the purpose set forth in subsection (b)(4) that is 
     estimated to cost more than $500,000.''.

     SEC. 333. SOUTHWEST BORDER FENCE.

       (a) Limitation of Funding for Expansion.--None of the funds 
     authorized to be appropriated for the Department of Defense 
     by this Act may be used to expand the Southwest border fence 
     until the Secretary of Defense submits the report required by 
     subsection (b).
       (b) Report.--The Secretary of Defense shall submit to the 
     congressional defense committees a report on the extent to 
     which the Southwest border fence has reduced the illegal 
     transportation of narcotics and other drugs into the United 
     States.
       (c) Southwest Border Fence Defined.--In this section, the 
     term ``Southwest border fence'' means the fence that was 
     constructed, at Department of Defense expense, along the 
     southwestern border of the United States for the purpose of 
     preventing or reducing the illegal transportation of 
     narcotics and other drugs into the United States.

     SEC. 334. REVISION AND CLARIFICATION OF AUTHORITY FOR FEDERAL 
                   SUPPORT OF NATIONAL GUARD DRUG INTERDICTION AND 
                   COUNTER-DRUG ACTIVITIES.

       (a) Procurement of Equipment.--Subsection (a)(3) of section 
     112 of title 32, United States Code, is amended by striking 
     out ``and leasing of equipment'' and inserting in lieu 
     thereof ``and equipment, and the leasing of equipment,''.
       (b) Training and Readiness.--Subsection (b)(2) of such 
     section is amended to read as follows:
       ``(2)(A) A member of the National Guard serving on full-
     time National Guard duty under orders authorized under 
     paragraph (1) shall participate in the training required 
     under section 502(a) of this title in addition to the duty 
     performed for the purpose authorized under that paragraph. 
     The pay, allowances, and other benefits of the member while 
     participating in the training shall be the same as those to 
     which the member is entitled while performing duty for the 
     purpose of carrying out drug interdiction and counter-drug 
     activities.
       ``(B) Appropriations available for the Department of 
     Defense for drug interdiction and counter-drug activities may 
     be used for

[[Page S7478]]

     paying costs associated with a member's participation in 
     training described in subparagraph (A). The appropriation 
     shall be reimbursed in full, out of appropriations available 
     for paying those costs, for the amounts paid. Appropriations 
     available for paying those costs shall be available for 
     making the reimbursements.''.
       (c) Assistance to Youth and Charitable Organizations.--
     Subsection (b)(3) of such section is amended to read as 
     follows:
       ``(2) A unit or member of the National Guard of a State may 
     be used, pursuant to a State drug interdiction and counter-
     drug activities plan approved by the Secretary of Defense 
     under this section, to provide services or other assistance 
     (other than air transportation) to an organization eligible 
     to receive services under section 508 of this title if--
       ``(A) the State drug interdiction and counter-drug 
     activities plan specifically recognizes the organization as 
     being eligible to receive the services or assistance;
       ``(B) in the case of services, the provision of the 
     services meets the requirements of paragraphs (1) and (2) of 
     subsection (a) of section 508 of this title; and
       ``(C) the services or assistance is authorized under 
     subsection (b) or (c) of such section or in the State drug 
     interdiction and counter-drug activities plan.''.
       (d) Definition of Drug Interdiction and Counter-drug 
     Activities.--Subsection (i)(1) of such section is amended by 
     inserting after ``drug interdiction and counter-drug law 
     enforcement activities'' the following: ``, including drug 
     demand reduction activities,''.

     SEC. 335. SENSE OF CONGRESS REGARDING PRIORITY OF DRUG 
                   INTERDICTION AND COUNTER-DRUG ACTIVITIES.

       It is the sense of Congress that the Secretary of Defense 
     should revise the Global Military Force Policy of the 
     Department of Defense--
       (1) to treat the international drug interdiction and 
     counter-drug activities of the department as a military 
     operation other than war, thereby elevating the priority 
     given such activities under the policy to the next priority 
     below the priority given to war under the policy and to the 
     same priority as is given to peacekeeping operations under 
     the policy; and
       (2) to allocate the assets of the department to drug 
     interdiction and counter-drug activities in accordance with 
     the priority given those activities.

                       Subtitle E--Other Matters

     SEC. 341. LIQUIDITY OF WORKING-CAPITAL FUNDS.

       (a) Increased Cash Balances.--The Secretary of Defense 
     shall administer the working-capital funds of the Department 
     of Defense during fiscal year 1999 so as to ensure that the 
     total amount of the cash balances in such funds on September 
     30, 1999, exceeds the total amount of the cash balances in 
     such funds on September 30, 1998, by $1,300,000,000.
       (b) Actions Regarding Unbudgeted Losses and Gains.--(1) In 
     order to achieve the increase in cash balances in working-
     capital funds required under subsection (a), the Under 
     Secretary of Defense (Comptroller) shall--
       (A) assess surcharges on the rates charged to Department of 
     Defense activities for the performance of depot-level 
     maintenance and repair workloads for those activities in 
     fiscal year 1999 as necessary to recoup for the working-
     capital funds the amounts of any operational losses that are 
     incurred in the performance of those workloads in excess of 
     the amounts of the losses that are budgeted for fiscal year 
     1999; and
       (B) return to Department of Defense activities any amounts 
     that--
       (i) are realized for the working-capital funds for depot-
     level maintenance and repair workloads in excess of the 
     estimated revenues budgeted for the performance of those 
     workloads that originate in those activities; and
       (ii) are not needed to achieve the required increase in 
     cash balances.
       (2) The Under Secretary of Defense (Comptroller) shall 
     prescribe policies and procedures for carrying out paragraph 
     (1). The policies and procedures shall include a prohibition 
     on applying assessments of surcharges to a Department of 
     Defense activity more frequently than once every six months.
       (c) Waiver.--(1) The Secretary of Defense may waive the 
     requirements of this section upon certifying to Congress, in 
     writing, that the waiver is necessary to meet requirements 
     associated with--
       (A) a contingency operation (as defined in section 
     101(a)(13) of title 10, United States Code); or
       (B) an operation of the Armed Forces that commenced before 
     October 1, 1998, and continues during fiscal year 1999.
       (2) The waiver authority under paragraph (1) may not be 
     delegated to any official other than the Deputy Secretary of 
     Defense.
       (3) The waiver authority under paragraph (1) does not apply 
     to the limitation in subsection (d) or the limitation in 
     section 2208(l)(3) of title 10, United States Code (as added 
     by subsection (e)).
       (d) Fiscal Year 1999 Limitation on Advance Billings.--(1) 
     The total amount of the advance billings rendered or imposed 
     for the working-capital funds of the Department of Defense 
     and the Defense Business Operations Fund in fiscal year 
     1999--
       (A) for the Department of the Navy, may not exceed 
     $500,000,000; and
       (B) for the Department of the Air Force, may not exceed 
     $500,000,000.
       (2) In paragraph (1), the term ``advance billing'' has the 
     meaning given such term in section 2208(l) of title 10, 
     United States Code.
       (e) Permanent Limitation on Advance Billings.--(1) Section 
     2208(l) of title 10, United States Code, is amended--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) The total amount of the advance billings rendered or 
     imposed for all working-capital funds of the Department of 
     Defense in a fiscal year may not exceed $1,000,000,000.''.
       (2) Section 2208(l)(3) of such title, as added by paragraph 
     (1), applies to fiscal years after fiscal year 1999.
       (f) Semiannual Report.--(1) The Under Secretary shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives--
       (A) not later than May 1, 1999, a report on the 
     administration of this section for the 6-month period ending 
     on March 31, 1999; and
       (B) not later than November 1, 1999, a report on the 
     administration of this section for the 6-month period ending 
     on September 30, 1999.
       (2) Each report shall include, for the 6-month period 
     covered by the report, the following:
       (A) The profit and loss status of each working-capital fund 
     activity.
       (B) The actions taken by the Secretary of each military 
     department to use assessments of surcharges to correct for 
     unbudgeted losses and gains.

     SEC. 342. TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL 
                   FUNDS AND CERTAIN ACTIVITIES THROUGH THE 
                   DEFENSE BUSINESS OPERATIONS FUND.

       (a) Revision of Certain DBOF Provisions and Reenactment To 
     Apply to Working-Capital Funds Generally.--Section 2208 of 
     title 10, United States Code, is amended by adding at the end 
     the following:
       ``(m) Capital Asset Subaccounts.--Amounts charged for 
     depreciation of capital assets shall be credited to a 
     separate capital asset subaccount established within a 
     working-capital fund.
       ``(n) Separate Accounting, Reporting, and Auditing of Funds 
     and Activities.--The Secretary of Defense, with respect to 
     the working-capital funds of each Defense Agency, and the 
     Secretary of each military department, with respect to the 
     working-capital funds of the military department, shall 
     provide in accordance with this subsection for separate 
     accounting, reporting, and auditing of funds and activities 
     managed through the working-capital funds.
       ``(o) Charges for Goods and Services Provided Through the 
     Fund.--(1) Charges for goods and services provided for an 
     activity through a working-capital fund shall include the 
     following:
       ``(A) Amounts necessary to recover the full costs of the 
     goods and services provided for that activity.
       ``(B) Amounts for depreciation of capital assets, set in 
     accordance with generally accepted accounting principles.
       ``(2) Charges for goods and services provided through a 
     working-capital fund may not include the following:
       ``(A) Amounts necessary to recover the costs of a military 
     construction project (as defined in section 2801(b) of this 
     title), other than a minor construction project financed by 
     the fund pursuant to section 2805(c)(1) of this title.
       ``(B) Amounts necessary to cover costs incurred in 
     connection with the closure or realignment of a military 
     installation.
       ``(C) Amounts necessary to recover the costs of functions 
     designated by the Secretary of Defense as mission critical, 
     such as ammunition handling safety, and amounts for ancillary 
     tasks not directly related to the mission of the function or 
     activity managed through the fund.
       ``(p) Procedures For Accumulation of Funds.--The Secretary 
     of Defense, with respect to each working-capital fund of a 
     Defense Agency, and the Secretary of a military department, 
     with respect to each working-capital fund of the military 
     department, shall establish billing procedures to ensure that 
     the balance in that working-capital fund does not exceed the 
     amount necessary to provide for the working-capital 
     requirements of that fund, as determined by the Secretary 
     concerned.
       ``(q) Annual Reports and Budget.--The Secretary of Defense, 
     with respect to each working-capital fund of a Defense 
     Agency, and the Secretary of each military department, with 
     respect to each working-capital fund of the military 
     department, shall annually submit to Congress, at the same 
     time that the President submits the budget under section 1105 
     of title 31, the following:
       ``(1) A detailed report that contains a statement of all 
     receipts and disbursements of the fund (including such a 
     statement for each subaccount of the fund) for the fiscal 
     year ending in the year preceding the year in which the 
     budget is submitted.
       ``(2) A detailed proposed budget for the operation of the 
     fund for the fiscal year for which the budget is submitted.
       ``(3) A comparison of the amounts actually expended for the 
     operation of the fund for the fiscal year referred to in 
     paragraph (1) with the amount proposed for the operation of 
     the fund for that fiscal year in the President's budget.
       ``(4) A report on the capital asset subaccount of the fund 
     that contains the following information:

[[Page S7479]]

       ``(A) The opening balance of the subaccount as of the 
     beginning of the fiscal year in which the report is 
     submitted.
       ``(B) The estimated amounts to be credited to the 
     subaccount in the fiscal year in which the report is 
     submitted.
       ``(C) The estimated amounts of outlays to be paid out of 
     the subaccount in the fiscal year in which the report is 
     submitted.
       ``(D) The estimated balance of the subaccount at the end of 
     the fiscal year in which the report is submitted.
       ``(E) A statement of how much of the estimated balance at 
     the end of the fiscal year in which the report is submitted 
     will be needed to pay outlays in the immediately following 
     fiscal year that are in excess of the amount to be credited 
     to the subaccount in the immediately following fiscal 
     year.''.
       (b) Repeal of Authority To Manage Through the Defense 
     Business Operations Fund.--(1) Section 2216a of title 10, 
     United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 131 
     of such title is amended by striking out the item relating to 
     section 2216a.

     SEC. 343. CLARIFICATION OF AUTHORITY TO RETAIN RECOVERED 
                   COSTS OF DISPOSALS IN WORKING-CAPITAL FUNDS.

       Section 2210(a) of title 10, United States Code, is amended 
     to read as follows:
       ``(a)(1) A working-capital fund established pursuant to 
     section 2208 of this title may retain so much of the proceeds 
     of disposals of property referred to in paragraph (2) as is 
     necessary to recover the expenses incurred by the fund in 
     disposing of such property. Proceeds from the sale or 
     disposal of such property in excess of amounts necessary to 
     recover the expenses may be credited to current applicable 
     appropriations of the Department of Defense.
       ``(2) Paragraph (1) applies to disposals of supplies, 
     material, equipment, and other personal property that were 
     not financed by stock funds established under section 2208 of 
     this title.''.

     SEC. 344. BEST COMMERCIAL INVENTORY PRACTICES FOR MANAGEMENT 
                   OF SECONDARY SUPPLY ITEMS.

       (a) Development and Submission of Schedule.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Secretary of each military department shall develop and 
     submit to Congress a schedule for implementing within the 
     military department, for secondary supply items managed by 
     that military department, inventory practices identified by 
     the Secretary as being the best commercial inventory 
     practices for the acquisition and distribution of such supply 
     items consistent with military requirements. The schedule 
     shall provide for the implementation of such practices to be 
     completed not later than five years after the date of the 
     enactment of this Act.
       (b) Definition.--For purposes of this section, the term 
     ``best commercial inventory practice'' includes cellular 
     repair processes, use of third-party logistics providers, and 
     any other practice that the Secretary determines will enable 
     the military department to reduce inventory levels and 
     holding costs while improving the responsiveness of the 
     supply system to user needs.
       (c) GAO Reports on Military Department and Defense 
     Logistics Agency Schedules.--(1) Not later than 240 days 
     after the date of the enactment of this Act, the Comptroller 
     General shall submit to Congress a report evaluating the 
     extent to which the Secretary of each military department has 
     complied with the requirements of this section.
       (2) Not later than 18 months after the date on which the 
     Director of the Defense Logistics Agency submits to Congress 
     a schedule for implementing best commercial inventory 
     practices under section 395 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 1718; 10 U.S.C. 2458 note), the Comptroller General 
     shall submit to Congress an evaluation of the extent to which 
     best commercial inventory practices are being implemented in 
     the Defense Logistics Agency in accordance with that 
     schedule.

     SEC. 345. INCREASED USE OF SMART CARDS.

       (a) Funding for Increased Use Generally.--Of the funds 
     available for the Navy for fiscal year 1999 for operation and 
     maintenance, the Secretary of the Navy shall allocate 
     sufficient amounts, up to $25,000,000, to making significant 
     progress toward ensuring that smart cards having a multi-
     application, multi-technology automated reading capability 
     are issued and used throughout the Navy and the Marine Corps 
     for purposes for which such cards are suitable.
       (b) Deployment of Smart Cards.--(1) Not later than March 
     31, 1999, the Secretary of the Navy shall equip with smart 
     card technology at least one carrier battle group, one 
     carrier air wing, and one amphibious readiness group 
     (including the Marine Corps units embarked on the vessels of 
     such battle and readiness groups) in each of the United 
     States Atlantic Command and the United States Pacific 
     Command.
       (2) None of the funds appropriated pursuant to any 
     authorization of appropriations in this Act may be expended 
     after March 31, 1999, for the procurement of the Joint 
     Uniformed Services Identification card for, or for the 
     issuance of such card to, members of the Navy or the Marine 
     Corps until the Secretary of the Navy certifies in writing to 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives that the Secretary has completed the issuance 
     of smart cards in accordance with paragraph (1).
       (c) Plan.--Not later than March 31, 1999, the Secretary of 
     the Navy shall submit to the congressional defense committees 
     a plan for equipping all operational naval units with smart 
     card technology. The Secretary shall include in the plan 
     estimates of the costs of, and the savings to be derived 
     from, carrying out the plan.
       (d) Smart Card Defined.--In this section, the term ``smart 
     card'' means a credit card size device that contains one or 
     more integrated-circuits.

     SEC. 346. PUBLIC-PRIVATE COMPETITION IN THE PROVISION OF 
                   SUPPORT SERVICES.

       (a) Sense of the Senate.--It is the sense of the Senate 
     that the Secretary of Defense should take action to initiate 
     public-private competitions pursuant to Office of Management 
     and Budget Circular A-76 for functions of the Department of 
     Defense involving not fewer than a number of employees 
     equivalent to 30,000 full-time employees for each of fiscal 
     years 1999, 2000, 2001, 2002, 2003, and 2004.
       (b) Small Functions Qualified for a Waiver of the 
     Notification and Reporting Requirements for Conversion to 
     Contractor Performance.--(1) Section 2461(d) of title 10, 
     United States Code, is amended by striking out ``20 or 
     fewer'' and inserting in lieu thereof ``50 or fewer''.
       (2) Notwithstanding any other provision of law, no study, 
     notification, or report may be required pursuant to 
     subsection (a), (b), or (c) of section 2461 of title 10, 
     United States Code, or Office of Management and Budget 
     Circular A-76 for functions that are being performed by 50 or 
     fewer Department of Defense civilian employees.
       (c) Best Overall Value to the Taxpayer.--Section 2462(a) of 
     title 10, United States Code, is amended by striking out ``at 
     a cost that is lower'' and all that follows through the 
     period at the end and inserting in lieu thereof: ``at a lower 
     cost than the cost at which the Department can provide the 
     same supply or service or at a better overall value than the 
     value that the Department can provide for the same supply or 
     service. Each determination regarding relative cost or 
     relative overall value shall be based on an objective 
     evaluation of cost and performance-related factors and shall 
     include the consideration of any cost differential required 
     by law, Executive order, or regulation.''.
       (d) Effective Date.--Subsections (b) and (c), and the 
     amendments made by such subsections, shall take effect on 
     January 1, 2001.

     SEC. 347. CONDITION FOR PROVIDING FINANCIAL ASSISTANCE FOR 
                   SUPPORT OF ADDITIONAL DUTIES ASSIGNED TO THE 
                   ARMY NATIONAL GUARD.

       (a) Competitive Source Selection.--Section 113(b) of title 
     32, United States Code, is amended to read as follows:
       ``(b) Covered Activities.--(1) Except as provided in 
     paragraph (2), financial assistance may be provided for the 
     performance of an activity by the Army National Guard under 
     subsection (a) only if--
       ``(A) the activity is carried out in the performance of a 
     responsibility of the Secretary of the Army under paragraph 
     (6), (10), or (11) of section 3013(b) of title 10; and
       ``(B) the Army National Guard was selected to perform the 
     activity under competitive procedures that permit all 
     responsible private-sector sources to submit offers and be 
     considered for selection to perform the activity on the basis 
     of the offers.
       ``(2) Paragraph (1)(B) does not apply to an activity that, 
     on the date of the enactment of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999, was performed 
     for the Federal Government by employees of the Federal 
     Government or employees of a State.''.
       (b) Prospective Applicability.--Subparagraph (B) of section 
     113(b)(1) of title 32, United States Code (as amended by 
     subsection (a) of this section), does not apply to--
       (1) financial assistance provided under that section before 
     October 1, 1998; or
       (2) financial assistance for an activity that, on or before 
     May 8, 1998, the Secretary of the Army identified in writing 
     as being under consideration for supporting with financial 
     assistance under such section.

     SEC. 348. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY 
                   AIRFIELD, FORT HOOD, TEXAS.

       Section 319 of the National Defense Authorization Act for 
     Fiscal Year 1987 (Public Law 99-661; 100 Stat. 3855), 
     relating to a prohibition on the joint military-civilian use 
     of Robert Gray Army Airfield, Fort Hood, Texas, is repealed.

     SEC. 349. INVENTORY MANAGEMENT OF IN-TRANSIT SECONDARY ITEMS.

       (a) Requirement for Plan.--Not later than March 1, 1999, 
     the Secretary of Defense shall submit to Congress a plan to 
     address problems with Department of Defense management of the 
     department's inventories of in-transit secondary items as 
     follows:
       (1) The vulnerability of in-transit secondary items to loss 
     through fraud, waste, and abuse.
       (2) Loss of oversight of in-transit secondary items, 
     including any loss of oversight when items are being 
     transported by commercial carriers.
       (3) Loss of accountability for in-transit secondary items 
     due to either a delay of delivery of the items or a lack of 
     notification of a delivery of the items.
       (b) Content of Plan.-- The plan shall include, for each of 
     the problems described in subsection (a), the following 
     information:

[[Page S7480]]

       (1) The actions to be taken to correct the problems.
       (2) Statements of objectives.
       (3) Performance measures and schedules.
       (4) An identification of any resources that may be 
     necessary for correcting the problem, together with an 
     estimate of the annual costs.
       (c) GAO Reviews.--(1) Not later than 60 days after the date 
     on which the Secretary of Defense submits the plan to 
     Congress, the Comptroller General shall review the plan and 
     submit to Congress any comments that the Comptroller General 
     considers appropriate regarding the plan.
       (2) The Comptroller General shall monitor any 
     implementation of the plan and, not later than one year after 
     the date referred to in paragraph (1), submit to Congress an 
     assessment of the extent to which the plan has been 
     implemented.

     SEC. 350. PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.

       Not later than March 31, 1999, the Comptroller General 
     shall submit to the congressional defense committees a report 
     concerning--
       (1) the effect that the quadrennial defense review's 
     proposed personnel reductions in the Army Materiel Command 
     will have on workload and readiness if implemented; and
       (2) the projected cost savings from such reductions and the 
     manner in which such savings are expected to be achieved.

     SEC. 351. PROHIBITIONS REGARDING EVALUATION OF MERIT OF 
                   SELLING MALT BEVERAGES AND WINE IN COMMISSARY 
                   STORES AS EXCHANGE SYSTEM MERCHANDISE.

       Neither the Secretary of Defense nor any other official of 
     the Department of Defense may--
       (1) by contract or otherwise, conduct a survey of eligible 
     patrons of the commissary store system to determine patron 
     interest in having commissary stores sell malt beverages and 
     wine as exchange store merchandise; or
       (2) conduct a demonstration project to evaluate the merit 
     of selling malt beverages and wine in commissary stores as 
     exchange store merchandise.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 1999, as follows:
       (1) The Army, 480,000.
       (2) The Navy, 372,696.
       (3) The Marine Corps, 172,200.
       (4) The Air Force, 370,882.

     SEC. 402. LIMITED EXCLUSIONS OF JOINT DUTY OFFICERS FROM 
                   LIMITATIONS ON NUMBER OF GENERAL AND FLAG 
                   OFFICERS.

       (a) One Additional Exemption From Percentage Limitation on 
     Number of Lieutenant Generals and Vice Admirals.--Section 
     525(b)(4)(B) of title 10, United States Code, is amended by 
     striking out ``six'' and inserting in lieu thereof ``seven''.
       (b) Extension of Authority To Exclude Up to 12 Joint Duty 
     Officers From Limitation on Authorized General and Flag 
     Officer Strength.--Section 526(b)(2) of such title is amended 
     by striking out ``October 1, 1998'' and inserting in lieu 
     thereof ``October 1, 2002''.

     SEC. 403. LIMITATION ON DAILY AVERAGE OF PERSONNEL ON ACTIVE 
                   DUTY IN GRADES E-8 AND E-9.

       (a) Fiscal Year Basis for Application of Limitation.--The 
     first sentence of section 517(a) of title 10, United States 
     Code, is amended--
       (1) by striking out ``a calendar year'' and inserting in 
     lieu thereof ``a fiscal year''; and
       (2) by striking out ``January 1 of that year'' and 
     inserting in lieu thereof ``the first day of that fiscal 
     year''.
       (b) Correction of Cross Reference.--Such sentence is 
     further amended by striking out ``Except as provided in 
     section 307 of title 37, the'' and inserting in lieu thereof 
     ``The''.

     SEC. 404. REPEAL OF PERMANENT END STRENGTH REQUIREMENT FOR 
                   SUPPORT OF TWO MAJOR REGIONAL CONTINGENCIES.

       (a) Repeal.--Section 691 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 39 of such title is amended by striking 
     out the item relating to section 691.

                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) In General.--The Armed Forces are authorized strengths 
     for Selected Reserve personnel of the reserve components as 
     of September 30, 1999, as follows:
       (1) The Army National Guard of the United States, 357,000.
       (2) The Army Reserve, 208,000.
       (3) The Naval Reserve, 90,843.
       (4) The Marine Corps Reserve, 40,018.
       (5) The Air National Guard of the United States, 106,991.
       (6) The Air Force Reserve, 74,242.
       (7) The Coast Guard Reserve, 8,000.
       (b) Waiver Authority.--The Secretary of Defense may vary an 
     end strength authorized by subsection (a) by not more than 2 
     percent.
       (c) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component shall be proportionately reduced by--
       (1) the total authorized strength of units organized to 
     serve as units of the Selected Reserve of such component 
     which are on active duty (other than for training) at the end 
     of the fiscal year, and
       (2) the total number of individual members not in units 
     organized to serve as units of the Selected Reserve of such 
     component who are on active duty (other than for training or 
     for unsatisfactory participation in training) without their 
     consent at the end of the fiscal year.
     Whenever such units or such individual members are released 
     from active duty during any fiscal year, the end strength 
     prescribed for such fiscal year for the Selected Reserve of 
     such reserve component shall be proportionately increased by 
     the total authorized strengths of such units and by the total 
     number of such individual members.

     SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN 
                   SUPPORT OF THE RESERVES.

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 1999, the following number of Reserves to be 
     serving on full-time active duty or full-time duty, in the 
     case of members of the National Guard, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 21,763.
       (2) The Army Reserve, 11,804.
       (3) The Naval Reserve, 15,590.
       (4) The Marine Corps Reserve, 2,362.
       (5) The Air National Guard of the United States, 10,930.
       (6) The Air Force Reserve, 991.

     SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL 
                   STATUS).

       The reserve components of the Army and the Air Force are 
     authorized strengths for military technicians (dual status) 
     as of September 30, 1999, as follows:
       (1) For the Army Reserve, 5,205.
       (2) For the Army National Guard of the United States, 
     22,179.
       (3) For the Air Force Reserve, 9,761.
       (4) For the Air National Guard of the United States, 
     22,408.

     SEC. 414. EXCLUSION OF ADDITIONAL RESERVE COMPONENT GENERAL 
                   AND FLAG OFFICERS FROM LIMITATION ON NUMBER OF 
                   GENERAL AND FLAG OFFICERS WHO MAY SERVE ON 
                   ACTIVE DUTY.

       Section 526(d) of title 10, United States Code, is amended 
     to read as follows:
       ``(d) Exclusion of Certain Reserve Officers.--(1) Subject 
     to paragraph (2), the limitations of this section do not 
     apply to the following reserve component general or flag 
     officers:
       ``(A) A general or flag officer who is on active duty for 
     training.
       ``(B) A general or flag officer who is on active duty under 
     a call or order specifying a period of less than 180 days.
       ``(C) A general or flag officer who is on active duty under 
     a call or order specifying a period of more than 179 days.
       ``(2) The number of general or flag officers of an armed 
     force that are excluded from the applicability of the 
     limitations of this section under paragraph (1)(C) at any one 
     time may not exceed the number equal to three percent of the 
     number specified for that armed force under subsection 
     (a).''.

     SEC. 415. INCREASE IN NUMBERS OF MEMBERS IN CERTAIN GRADES 
                   AUTHORIZED TO BE ON ACTIVE DUTY IN SUPPORT OF 
                   THE RESERVES.

       (a) Officers.--The table in section 12011(a) of title 10, 
     United States Code, is amended to read as follows:
       

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps 
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,219   1,071     791      140  
Lieutenant Colonel or Commander.....    1,524     520     713       90  
Colonel or Navy Captain.............      438     188     297     30''. 
------------------------------------------------------------------------

       (b) Senior Enlisted Members.--The table in section 12012(a) 
     of title 10, United States Code, is amended to read as 
     follows:
       

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps 
------------------------------------------------------------------------
E-9.................................     623     202      395       20  
E-8.................................   2,585     429      997     94''. 
------------------------------------------------------------------------

     SEC. 416. CONSOLIDATION OF STRENGTH AUTHORIZATIONS FOR ACTIVE 
                   STATUS NAVAL RESERVE FLAG OFFICERS OF THE NAVY 
                   MEDICAL DEPARTMENT STAFF CORPS.

       Section 12004(c) of subtitle E of title 10, United States 
     Code, is amended--
       (1) in the table in paragraph (1)--
       (A) by striking out the item relating to the Medical Corps 
     and inserting in lieu thereof the following:

  ``Medical Department staff corps............................9''; ....

     and
       (B) by striking out the items relating to the Dental Corps, 
     the Nurse Corps, and the Medical Service Corps; and
       (2) by adding at the end the following:
       ``(4)(A) For the purposes of paragraph (1), the Medical 
     Department staff corps referred to in the table are as 
     follows:
       ``(i) The Medical Corps.
       ``(ii) The Dental Corps.
       ``(iii) The Nurse Corps.
       ``(iv) The Medical Service Corps.
       ``(B) Each of the Medical Department staff corps is 
     authorized one rear admiral (lower

[[Page S7481]]

     half) within the strength authorization distributed to the 
     Medical Department staff corps under paragraph (1). The 
     Secretary of the Navy shall distribute the remainder of the 
     strength authorization for the Medical Department staff corps 
     under that paragraph among those staff corps as the Secretary 
     determines appropriate to meet the needs of the Navy.''.

              Subtitle C--Authorization of Appropriations

     SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     1999 a total of $70,434,386,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 1999.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

     SEC. 501. STREAMLINED SELECTIVE RETENTION PROCESS FOR REGULAR 
                   OFFICERS.

       (a) Repeal of Requirement for Duplicative Board.--Section 
     1183 of title 10, United States Code, is repealed.
       (b) Conforming Amendments.--(1) Section 1182(c) of such 
     title is amended by striking out ``send the record of 
     proceedings to a board of review convened under section 1183 
     of this title'' and inserting in lieu thereof ``recommend to 
     the Secretary concerned that the officer not be retained on 
     active duty''.
       (2) Section 1184 of such title is amended by striking out 
     ``board of review convened under section 1183 of this title'' 
     and inserting in lieu thereof ``board of inquiry convened 
     under section 1182 of this title''.
       (c) Clerical Amendments.--(1) The heading for section 1184 
     of such title is amended by striking out ``review'' and 
     inserting in lieu thereof ``inquiry''.
       (2) The table of sections at the beginning of chapter 60 of 
     such title is amended by striking out the items relating to 
     sections 1183 and 1184 and inserting in lieu thereof the 
     following:

``1184. Removal of officer: action by Secretary upon recommendation of 
              board of inquiry.''.

     SEC. 502. PERMANENT APPLICABILITY OF LIMITATIONS ON YEARS OF 
                   ACTIVE NAVAL SERVICE OF NAVY LIMITED DUTY 
                   OFFICERS IN GRADES OF COMMANDER AND CAPTAIN.

       (a) Commanders.--Section 633 of title 10, United States 
     Code, is amended--
       (1) by striking out ``Except an officer'' and all that 
     follows through ``or section 6383 of this title applies'' and 
     inserting in lieu thereof ``Except an officer of the Navy or 
     Marine Corps who is an officer designated for limited duty to 
     whom section 5596(e) or 6383 of this title applies''; and
       (2) by striking out the second sentence.
       (b) Captains.--Section 634 of such title is amended--
       (1) by inserting ``an officer of the Navy who is designated 
     for limited duty to whom section 6383(a)(4) of this title 
     applies and except'' in the first sentence after ``Except''; 
     and
       (2) by striking out the second sentence.
       (c) Years of Active Naval Service.--Section 6383(a) of such 
     title is amended by striking out paragraph (5).
       (d) Limitations on Selective Retentions.--Section 6383(k) 
     of such title is amended by striking out the last sentence.

     SEC. 503. INVOLUNTARY SEPARATION PAY DENIED FOR OFFICER 
                   DISCHARGED FOR FAILURE OF SELECTION FOR 
                   PROMOTION REQUESTED BY THE OFFICER.

       (a) Ineligibility for Separation Pay.--Section 1174(a) of 
     title 10, United States Code, is amended by adding at the end 
     the following:
       ``(3) Notwithstanding paragraphs (1) and (2), an officer 
     discharged for twice failing of selection for promotion to 
     the next higher grade is not entitled to separation pay under 
     this section if the officer submitted a request not to be 
     selected for promotion to any selection board that considered 
     and did not select the officer for promotion to that 
     grade.''.
       (b) Report of Selection Board To Name Officers Requesting 
     Nonselection.--Section 617 of such title is amended by adding 
     at the end the following:
       ``(c) A selection board convened under section 611(a) of 
     this title shall include in its report to the Secretary 
     concerned the name of any regular officer considered and not 
     recommended by the board for promotion who submitted to the 
     board a request not to be selected for promotion.''.
       (c) Effective Date.--This section and the amendments made 
     by this section shall take effect on the date of the 
     enactment of this Act and shall apply with respect to 
     selection boards convened under section 611(a) of title 10, 
     United States Code, on or after that date.

     SEC. 504. TERM OF OFFICE OF THE CHIEF OF THE AIR FORCE NURSE 
                   CORPS.

       Section 8069(b) of title 10, United States Code, is amended 
     in the third sentence by striking out ``and'' and inserting 
     in lieu thereof the following: ``except that the Secretary 
     may increase the limit to four years in any case in which the 
     Secretary determines that special circumstances justify a 
     longer term of service in the position. An officer appointed 
     as Chief''.

     SEC. 505. ATTENDANCE OF RECIPIENTS OF NAVAL RESERVE OFFICERS' 
                   TRAINING CORPS SCHOLARSHIPS AT PARTICIPATING 
                   COLLEGES OR UNIVERSITIES.

       Section 2107 of title 10, United States Code, is amended by 
     adding at the end the following:
       ``(i)(1) Notwithstanding any other provision of law or any 
     policy or regulation of the Department of Defense or of the 
     Department of the Navy, recipients of Naval Reserve Officers' 
     Training Corps scholarships who live in a State which has 
     more scholarship awardees than slots available under the Navy 
     quotas in their State colleges and universities may attend 
     any college or university of their choice in their State to 
     which they have been accepted, so long as the college or 
     university is a participant in the Naval Reserve Officers' 
     Training Corps program.
       ``(2) The Department of Defense and the Department of the 
     Navy are prohibited from setting maximum limits on the number 
     of Naval Reserve Officers' Training Corps scholarship 
     students who can be enrolled at any college or university 
     participating in the Naval Reserve Officers' Training Corps 
     program in such State.''.

                 Subtitle B--Reserve Component Matters

     SEC. 511. SERVICE REQUIRED FOR RETIREMENT OF NATIONAL GUARD 
                   OFFICER IN HIGHER GRADE.

       (a) Revision of Requirement.--Subparagraph (E) of section 
     1370(d)(3) of title 10, United States Code, is amended to 
     read as follows:
       ``(E) To the extent authorized by the Secretary of the 
     military department concerned, a person who, after having 
     been found qualified for Federal recognition in a higher 
     grade by a board under section 307 of title 32, serves in a 
     position for which that grade is the minimum authorized grade 
     and is appointed as a reserve officer in that grade may be 
     credited for the purposes of subparagraph (A) as having 
     served in that grade. The period of the service for which 
     credit is afforded under the preceding sentence may only be 
     the period for which the person served in the position after 
     the Senate provides advice and consent for the 
     appointment.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act 
     and shall apply with respect to appointments to higher grades 
     that take effect after that date.

     SEC. 512. REDUCED TIME-IN-GRADE REQUIREMENT FOR RESERVE 
                   GENERAL AND FLAG OFFICERS INVOLUNTARILY 
                   TRANSFERRED FROM ACTIVE STATUS.

       (a) Minimum Service in Active Status.--Section 1370(d)(3) 
     of title 10, United States Code, as amended by section 511, 
     is further amended by adding at the end the following new 
     subparagraph:
       ``(F) A person covered by subparagraph (A) who has 
     completed at least six months of satisfactory service in a 
     grade above colonel or (in the case of the Navy) captain and, 
     while serving in an active status in such grade, is 
     involuntarily transferred (other than for cause) from active 
     status may be credited with satisfactory service in the grade 
     in which serving at the time of such transfer, 
     notwithstanding failure of the person to complete three years 
     of service in that grade.''.
       (b) Effective Date.--Subparagraph (F) of such section, as 
     added by subsection (a), shall take effect on the date of the 
     enactment of this Act and shall apply with respect to 
     transfers referred to in such subparagraph that are made on 
     or after that date.

     SEC. 513. ELIGIBILITY OF ARMY AND AIR FORCE RESERVE BRIGADIER 
                   GENERALS TO BE CONSIDERED FOR PROMOTION WHILE 
                   ON INACTIVE STATUS LIST.

       (a) Waiver of Active Status Requirement.--Chapter 1405 of 
     title 10, United States Code, is amended by adding at the end 
     the following:

     ``Sec. 14318. Officers on inactive status list: eligibility 
       of Army and Air Force reserve brigadier generals for 
       consideration for promotion

       ``(a) Waiver of One-Year Active Status Rule.--The Secretary 
     concerned may waive the eligibility requirements in section 
     14301(a) of this title (and the requirement in section 
     140101(a) of this title that an officer be on a reserve 
     active-status list) in the case of a general officer referred 
     to in subsection (b) and authorize the officer to be 
     considered for promotion under this chapter by a promotion 
     board convened under section 14101(a) of this title.
       ``(b) Applicability.--Subsection (a) applies to a reserve 
     officer of the Army or Air Force who--
       ``(1) is on the inactive status list of the Standby Reserve 
     in the grade of brigadier general pursuant to a transfer 
     under section 14314(a)(2) of this title;
       ``(2) has been on the inactive status list pursuant to the 
     transfer for less than one year as of the date of the 
     convening of the promotion board that is to consider the 
     officer for promotion; and
       ``(3) during the one-year period ending on the date of the 
     transfer to the inactive status list, continuously performed 
     service on either the reserve active-status list, the active-
     duty list, or a combination of both lists.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``14318. Officers on inactive status list: eligibility of Army and Air 
              Force reserve brigadier generals for consideration for 
              promotion.''.

[[Page S7482]]

     SEC. 514. COMPOSITION OF SELECTIVE EARLY RETIREMENT BOARDS 
                   FOR REAR ADMIRALS OF THE NAVAL RESERVE AND 
                   MAJOR GENERALS OF THE MARINE CORPS RESERVE.

       Section 14705(b) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(b) Boards.--''; and
       (2) by adding at the end the following:
       ``(2) In the case of a board convened to consider the early 
     retirement of officers in the grade of rear admiral in the 
     Naval Reserve or major general in the Marine Corps Reserve, 
     the Secretary of the Navy may prescribe the composition of 
     the board notwithstanding section 14102(b) of this title. In 
     doing so, however, the Secretary shall ensure that each 
     regular commissioned officer of the Navy or the Marine Corps 
     appointed to the board holds a permanent grade higher than 
     the grade of the officers under consideration by the board 
     and that at least one member of the board is a reserve 
     officer who holds the grade of rear admiral or major 
     general.''.

     SEC. 515. USE OF RESERVES FOR EMERGENCIES INVOLVING WEAPONS 
                   OF MASS DESTRUCTION.

       (a) Order to Active Duty.--(1) Section 12304 of title 10, 
     United States Code, is amended--
       (A) in subsection (a), by inserting ``or is necessary to 
     provide assistance referred to in subsection (b)'' after ``to 
     augment the active forces for any operational mission''.
       (B) in subsection (b)--
       (i) by striking out ``(b)'' and inserting in lieu thereof 
     ``(c) Limitations.--(1)''; and
       (ii) by striking out ``, or to provide'' and inserting in 
     lieu thereof ``or, except as provided in subsection (b), to 
     provide'';
       (C) by redesignating subsection (c) as paragraph (2); and
       (D) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Support for Responses to Certain Emergencies.--The 
     authority under subsection (a) includes authority to order a 
     unit or member to active duty to provide assistance in 
     responding to an emergency involving a use or threatened use 
     of a weapon of mass destruction.''.
       (2) Subsection (i) of such section is amended to read as 
     follows:
       ``(i) Definitions.--For purposes of this section:
       ``(1) The term `Individual Ready Reserve mobilization 
     category' means, in the case of any reserve component, the 
     category of the Individual Ready Reserve described in section 
     10144(b) of this title.
       ``(2) The term `weapon of mass destruction' has the meaning 
     given such term in section 1402 of the Defense Against 
     Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
     2302(1)).''.
       (3) Such section is further amended--
       (A) in subsection (a), by inserting ``Authority.--'' after 
     ``(a)'';
       (B) in subsection (d), by inserting ``Exclusion From 
     Strength Limitations.--'' after ``(d)'';
       (C) in subsection (e), by inserting ``Policies and 
     Procedures.--'' after ``(e)'';
       (D) in subsection (f), by inserting ``Notification of 
     Congress.--'' after ``(f)'';
       (E) in subsection (g), by inserting ``Termination of 
     Duty.--'' after ``(g)''; and
       (F) in subsection (h), by inserting ``Relationship to War 
     Powers Resolution.--'' after ``(h)''.
       (b) Use of Active Guard and Reserve Personnel.--Section 
     12310 of title 10, United States Code, is amended by adding 
     at the end the following:
       ``(c)(1) A Reserve on active duty as described in 
     subsection (a), or a Reserve who is a member of the National 
     Guard serving on full-time National Guard duty under section 
     502(f) of title 32 in connection with functions referred to 
     in subsection (a), may perform any duties in support of 
     emergency preparedness programs to prepare for or to respond 
     to any emergency involving the use of a weapon of mass 
     destruction (as defined in section 1402 of the Defense 
     Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
     2302(1))).
       ``(2) The costs of the pay, allowances, clothing, 
     subsistence, gratuities, travel, and related expenses for a 
     Reserve performing duties under the authority of paragraph 
     (1) shall be paid from the appropriation that is available to 
     pay such costs for other members of the reserve component of 
     that Reserve who are performing duties as described in 
     subsection (a).''.

                       Subtitle C--Other Matters

      SEC. 521. ANNUAL MANPOWER REQUIREMENTS REPORT.

       Section 115a(a) of title 10, United States Code, is amended 
     by striking out the first sentence and inserting in lieu 
     thereof the following: ``The Secretary of Defense shall 
     submit an annual manpower requirements report to Congress 
     each year, not later than 45 days after the date on which the 
     President submits the budget for the next fiscal year to 
     Congress under section 1105(a) of title 31.''.

     SEC. 522. FOUR-YEAR EXTENSION OF CERTAIN FORCE REDUCTION 
                   TRANSITION PERIOD MANAGEMENT AND BENEFITS 
                   AUTHORITIES.

       (a) Active Force Early Retirement.--Section 4403(i) of the 
     National Defense Authorization Act for Fiscal Year 1993 (10 
     U.S.C. 1293 note) is amended by striking out ``October 1, 
     1999'' and inserting in lieu thereof ``October 1, 2003''.
       (b) Special Separation Benefits Program.--Section 1174a(h) 
     of title 10, United States Code, is amended by striking out 
     ``September 30, 1999'' and inserting in lieu thereof 
     ``September 30, 2003''.
       (c) Voluntary Separation Incentive.--Section 1175(d)(3) of 
     such title is amended by striking out ``September 30, 1999'' 
     and inserting in lieu thereof ``September 30, 2003''.
       (d) Selective Early Retirement Boards.--Section 638a(a) of 
     such title, is amended by striking out ``nine-year period'' 
     and inserting in lieu thereof ``13-year period''.
       (e) Retired Grade.--Section 1370(a)(2)(A) of such title is 
     amended by striking out ``nine-year period'' and inserting in 
     lieu thereof ``13-year period''.
       (f) Minimum Commissioned Service for Voluntary 
     Retirement.--Sections 3911(b), 6323(a)(2), and 8911(b) of 
     such title are amended by striking out ``nine-year period'' 
     and inserting in lieu thereof ``13-year period''.
       (g) Travel, Transportation, and Storage Benefits.--(1) 
     Subsections (c)(1)(C) and (f)(2)(B)(v) of section 404 of 
     title 37, United States Code, and subsections (a)(2)(B)(v) 
     and (g)(1)(C) of section 406 of such title are amended by 
     striking out ``nine-year period'' and inserting in lieu 
     thereof ``13-year period''.
       (2) Section 503(c)(1) of the National Defense Authorization 
     Act for Fiscal Year 1991 (37 U.S.C. 406 note) is amended by 
     striking out ``nine-year period'' and inserting in lieu 
     thereof ``13-year period''.
       (h) Educational Leave for Public and Community Service.--
     Section 4463(f) of the National Defense Authorization Act for 
     Fiscal Year 1993 (10 U.S.C. 1143a note) is amended by 
     striking out ``September 30, 1999'' and inserting in lieu 
     thereof ``September 30, 2003''.
       (i) Health Benefits.--Section 1145 of title 10, United 
     States Code, is amended--
       (1) in subsections (a)(1) and (c)(1), by striking out 
     ``nine-year period'' and inserting in lieu thereof ``13-year 
     period''; and
       (2) in subsection (e), by striking out ``five-year period'' 
     and inserting in lieu thereof ``nine-year period''.
       (j) Commissary and Exchange Benefits.--Section 1146 of such 
     title is amended--
       (1) by striking out ``nine-year period'' in the first 
     sentence and inserting in lieu thereof ``13-year period''; 
     and
       (2) by striking out ``five-year period'' in the second 
     sentence and inserting in lieu thereof ``nine-year period''.
       (k) Use of Military Housing.--Section 1147(a) of such title 
     10 is amended--
       (1) in paragraph (1), by striking out ``nine-year period'' 
     and inserting in lieu thereof ``13-year period''; and
       (2) in paragraph (2), by striking out ``five-year period'' 
     and inserting in lieu thereof ``nine-year period''.
       (l) Continued Enrollment of Dependents in Defense 
     Dependents' Education System.--Section 1407(c)(1) of the 
     Defense Dependents' Education Act of 1978 (20 U.S.C. 
     926(c)(1)) is amended by striking out ``nine-year period'' 
     and inserting in lieu thereof ``13-year period''.
       (m) Guard and Reserve Transition Initiatives.--Title XLIV 
     of the National Defense Authorization Act for Fiscal Year 
     1993 (10 U.S.C. 12681 note) is amended--
       (1) in section 4411, by striking out ``September 30, 1999'' 
     and inserting in lieu thereof ``September 30, 2003''; and
       (2) in section 4416(b)(1), by striking out ``October 1, 
     1999'' and inserting in lieu thereof ``October 1, 2003''.
       (n) Retired Pay for Nonregular Service-Age and Service 
     Requirements.--(1) Section 12731(f) of title 10, United 
     States Code, is amended by striking out ``September 30, 
     1999'' and inserting in lieu thereof ``September 30, 2003''.
       (2) Subsections (a)(1)(B) and (b) of section 12731a of such 
     title are amended by striking out ``October 1, 1999'' and 
     inserting in lieu thereof ``October 1, 2003''.
       (o) Reduction of Time-in-Grade Requirement for Retention of 
     Grade Upon Voluntary Retirement.--Section 1370(d) of such 
     title is amended by adding at the end the following new 
     paragraph:
       ``(5) The Secretary of Defense may authorize the Secretary 
     of a military department to reduce the three-year period 
     required by paragraph (3)(A) to a period not less than two 
     years in the case of retirements effective during the period 
     beginning on the date of the enactment of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 and 
     ending September 30, 2003. The number of the reserved 
     commissioned officers of an armed force in the same grade for 
     whom a reduction is made during any fiscal year in the period 
     of service-in-grade otherwise required under this paragraph 
     may not exceed the number equal to two percent of the 
     strength authorized for that fiscal year for reserve 
     commissioned officers of that armed force in an active status 
     in that grade.''.
       (p) Affiliation With Guard and Reserve Units; Waiver of 
     Certain Limitations.--Section 1150(a) of such title is 
     amended by striking out ``nine-year period'' and inserting in 
     lieu thereof ``13-year period''.
       (q) Time for Use of Montgomery G.I. Bill Entitlement.--
     Section 16133(b)(1)(B) of such title is amended by striking 
     out ``September 30, 1999'' and inserting in lieu thereof 
     ``September 30, 2003''.

     SEC. 523. CONTINUATION OF ELIGIBILITY FOR VOLUNTARY 
                   SEPARATION INCENTIVE AFTER INVOLUNTARY LOSS OF 
                   MEMBERSHIP IN READY OR STANDBY RESERVE.

       (a) Period of Eligibility.--Subsection (a) of section 1175 
     of title 10, United States Code, is amended--

[[Page S7483]]

       (1) by inserting ``(1)'' after ``(a)'';
       (2) by striking out ``, for the period of time the member 
     is serving in a reserve component''; and
       (3) by adding at the end the following:
       ``(2)(A) Except as provided in subparagraph (B), a 
     financial incentive provided a member under this section 
     shall be paid for the period equal to twice the number of 
     years of service of the member, computed as provided in 
     subsection (e)(5).
       ``(B) If, before the expiration of the period otherwise 
     applicable under subparagraph (A) to a member receiving a 
     financial incentive under this section, the member is 
     separated from a reserve component or is transferred to the 
     Retired Reserve, the period for payment of a financial 
     incentive to the member under this section shall terminate on 
     the date of the separation or transfer unless--
       ``(i) the separation or transfer is required by reason of 
     the age or number of years of service of the member;
       ``(ii) the separation or transfer is required by reason of 
     the failure of selection for promotion or the medical 
     disqualification of the member, except in a case in which the 
     Secretary of Defense or the Secretary of Transportation 
     determines that the basis for the separation or transfer is a 
     result of a deliberate action taken by the member with the 
     intent to avoid retention in the Ready Reserve or Standby 
     Reserve; or
       ``(iii) in the case of a separation, the member is 
     separated from the reserve component for appointment or 
     enlistment in or transfer to another reserve component of an 
     armed force for service in the Ready Reserve or Standby 
     Reserve of that armed force.''.
       (b) Repeal of Superseded Provision.--Subsection (e)(1) of 
     such section is amended by striking out the second sentence.

     SEC. 524. REPEAL OF LIMITATIONS ON AUTHORITY TO SET RATES AND 
                   WAIVE REQUIREMENT FOR REIMBURSEMENT OF EXPENSES 
                   INCURRED FOR INSTRUCTION AT SERVICE ACADEMIES 
                   OF PERSONS FROM FOREIGN COUNTRIES.

       (a) United States Military Academy.--Section 4344(b) of 
     title 10, United States Code, is amended--
       (1) in the second sentence of paragraph (2), by striking 
     out ``, except that the reimbursement rates may not be less 
     than the cost to the United States of providing such 
     instruction, including pay, allowances, and emoluments, to a 
     cadet appointed from the United States''; and
       (2) by striking out paragraph (3).
       (b) Naval Academy.--Section 6957(b) of such title is 
     amended--
       (1) in the second sentence of paragraph (2), by striking 
     out ``, except that the reimbursement rates may not be less 
     than the cost to the United States of providing such 
     instruction, including pay, allowances, and emoluments, to a 
     midshipman appointed from the United States''; and
       (2) by striking out paragraph (3).
       (c) Air Force Academy.--Section 9344(b) of such title is 
     amended--
       (1) in the second sentence of paragraph (2), by striking 
     out ``, except that the reimbursement rates may not be less 
     than the cost to the United States of providing such 
     instruction, including pay, allowances, and emoluments, to a 
     cadet appointed from the United States''; and
       (2) by striking out paragraph (3).

     SEC. 525. REPEAL OF RESTRICTION ON CIVILIAN EMPLOYMENT OF 
                   ENLISTED MEMBERS.

       (a) Repeal.--Section 974 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 49 of such title is amended by striking 
     out the item relating to section 974.

     SEC. 526. EXTENSION OF REPORTING DATES FOR COMMISSION ON 
                   MILITARY TRAINING AND GENDER-RELATED ISSUES.

       (a) Interim Report.--Subsection (e)(1) of section 562 of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 1754; 10 U.S.C. 113 note) is 
     amended by striking out ``April 15, 1998'' and inserting in 
     lieu thereof ``October 15, 1998''.
       (b) Final Report.--Subsection (e)(2) of such section is 
     amended by striking out ``September 16, 1998'' and inserting 
     in lieu thereof ``March 15, 1999''.

     SEC. 527. MORATORIUM ON CHANGES OF GENDER-RELATED POLICIES 
                   AND PRACTICES PENDING COMPLETION OF THE WORK OF 
                   THE COMMISSION ON MILITARY TRAINING AND GENDER-
                   RELATED ISSUES.

       Notwithstanding any other provision of law, officials of 
     the Department of Defense are prohibited from implementing 
     any change of policy or official practice in the department 
     regarding separation or integration of members of the Armed 
     Forces on the basis of gender that is within the 
     responsibility of the Commission on Military Training and 
     Gender-Related Issues to review under subtitle F of title V 
     of the National Defense Authorization Act for Fiscal Year 
     1998 (Public Law 105-85; 111 Stat. 1750), before the date on 
     which the commission terminates under section 564 of such 
     Act.

     SEC. 528. TRANSITIONAL COMPENSATION FOR ABUSED DEPENDENT 
                   CHILDREN NOT RESIDING WITH THE SPOUSE OR FORMER 
                   SPOUSE OF A MEMBER CONVICTED OF DEPENDENT 
                   ABUSE.

       (a) Entitlement Not Conditioned on Forfeiture of Spousal 
     Compensation.--Subsection (d) of section 1059 of title 10, 
     United States Code, is amended--
       (1) by striking out paragraph (1) and inserting in lieu 
     thereof the following:
       ``(1) If the individual was married at the time of the 
     commission of the dependent-abuse offense resulting in the 
     separation, the spouse or former spouse to whom the 
     individual was married at that time shall be paid such 
     compensation, including an amount (determined under 
     subsection (f)(2)) for each, if any, dependent child of the 
     individual described in subsection (b) who resides in the 
     same household as that spouse or former spouse.'';
       (2) in paragraph (2)--
       (A) by striking out ``(but for subsection (g)) would be 
     eligible'' and inserting in lieu thereof ``is or, but for 
     subsection (g), would be eligible''; and
       (B) by striking out ``such compensation'' and inserting in 
     lieu thereof ``compensation under this section''; and
       (3) in paragraph (4), by striking out ``For purposes of 
     paragraphs (2) and (3)'' and inserting in lieu thereof ``For 
     purposes of this subsection''.
       (b) Amount of Payment.--Subsection (f)(2) of such section 
     is amended by striking out ``has custody of a dependent child 
     or children of the member'' and inserting in lieu thereof 
     ``has custody of a dependent child of the member who resides 
     in the same household as that spouse or former spouse''.
       (c) Prospective Applicability.--No benefits shall accrue by 
     reason of the amendments made by this section for any month 
     that begins before the date of the enactment of this Act.

     SEC. 529. PILOT PROGRAM FOR TREATING GED AND HOME SCHOOL 
                   DIPLOMA RECIPIENTS AS HIGH SCHOOL GRADUATES FOR 
                   DETERMINATIONS OF ELIGIBILITY FOR ENLISTING IN 
                   THE ARMED FORCES.

       (a) Program Required.--The Secretary of Defense shall 
     establish a pilot program to assess whether the Armed Forces 
     could better meet recruiting requirements by treating GED 
     recipients and home school diploma recipients as having 
     graduated from high school with a high school diploma for the 
     purpose of determining the eligibility of those persons to 
     enlist in the Armed Forces. The Secretary of each military 
     department shall administer the pilot program for the armed 
     force or armed forces under the jurisdiction of the 
     Secretary.
       (b) Eligible Recipients.--(1) Under the pilot program, a 
     person shall be treated as having graduated from high school 
     with a high school diploma for the purpose described in 
     subsection (a) if the person--
       (A) has completed a general education development program 
     while participating in the National Guard Challenge Program 
     and is a GED recipient; or
       (B) is a home school diploma recipient and provides a 
     transcript demonstrating completion of high school to the 
     military department involved under the pilot program.
       (2) For the purposes of this section, a person is a GED 
     recipient if the person, after completing a general education 
     development program, has obtained certification of high 
     school equivalency by meeting State requirements and passing 
     a State approved exam that is administered for the purpose of 
     providing an appraisal of the person's achievement or 
     performance in the broad subject matter areas usually 
     required for high school graduates.
       (3) For the purposes of this section, a person is a home 
     school diploma recipient if the person has received a diploma 
     for completing a program of education through the high school 
     level at a home school, without regard to whether the home 
     school is treated as a private school under the law of the 
     State in which located.
       (c) Annual Limit on Number.--Not more than 1,250 GED 
     recipients, and not more than 1,250 home school diploma 
     recipients, enlisted by an armed force in any fiscal year may 
     be treated under the pilot program as having graduated from 
     high school with a high school diploma.
       (d) Period for Pilot Program.--The pilot program shall be 
     in effect for five fiscal years beginning on October 1, 1998.
       (e) Report.--(1) Not later than February 1, 2004, the 
     Secretary of Defense shall submit a report on the pilot 
     program to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives.
       (2)(A) The report shall include the assessment of the 
     Secretary of Defense, and any assessment of any of the 
     Secretaries of the military departments, regarding the value 
     of, and any necessity for, authority to treat GED recipients 
     and home school diploma recipients as having graduated from 
     high school with a high school diploma for the purpose of 
     determining the eligibility of those persons to enlist in the 
     Armed Forces.
       (B) The Secretary shall also set forth in the report, by 
     armed force for each fiscal year of the pilot program, a 
     comparison of the performance of the persons who enlisted in 
     that armed force during the fiscal year as GED or home school 
     diploma recipients treated under the pilot program as having 
     graduated from high school with a high school diploma with 
     the performance of the persons who enlisted in that armed 
     force during the same fiscal year after having graduated from 
     high school with a high school diploma, with respect to the 
     following:
       (i) Attrition.
       (ii) Discipline.
       (iii) Adaptability to military life.
       (iv) Aptitude for mastering the skills necessary for 
     technical specialties.
       (v) Reenlistment rates.

[[Page S7484]]

       (f) Reference to National Guard Challenge Program.--The 
     National Guard Challenge Program referred to in this section 
     is a program conducted under section 509 of title 32, United 
     States Code.
       (g) State Defined.--In this section, the term ``State'' has 
     the meaning given that term in section 509(l)(1) of title 32, 
     United States Code.

     SEC. 530. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN 
                   DECORATIONS TO CERTAIN PERSONS.

       (a) Waiver.--Any limitation established by law or policy 
     for the time within which a recommendation for the award of a 
     military decoration or award must be submitted shall not 
     apply to awards of decorations described in this section, the 
     award of each such decoration having been determined by the 
     Secretary of the military department concerned to be 
     warranted in accordance with section 1130 of title 10, United 
     States Code.
       (b) Distinguished-Service Cross.--Subsection (a) applies to 
     award of the Distinguished-Service Cross of the Army as 
     follows:
       (1) To Isaac Camacho of El Paso, Texas, for extraordinary 
     heroism in actions at Camp Hiep Hoa in Vietnam on November 
     24, 1963, while serving as a member of the Army.
       (2) To Bruce P. Crandall of Mesa, Arizona, for 
     extraordinary heroism in actions at Landing Zone X-Ray in 
     Vietnam on November 14, 1965, while serving as a member of 
     the Army.
       (3) To Leland B. Fair of Jessieville, Arkansas, for 
     extraordinary heroism in actions in the Philippine Islands on 
     July 4, 1945, while serving as a member of the Army.
       (c) Distinguished-Service Medal.--Subsection (a) applies to 
     award of the Distinguished-Service Medal of the Army to 
     Richard P. Sakakida of Fremont, California, for exceptionally 
     meritorious service while a prisoner of war in the Philippine 
     Islands from May 7, 1942, to September 14, 1945, while 
     serving as a member of the Army.
       (d) Distinguished Flying Cross.--Subsection (a) applies to 
     award of the Distinguished Flying Cross for service during 
     World War II or Korea (including multiple awards to the same 
     individual) in the case of each individual (not covered by 
     section 573(d) of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1757)) 
     concerning whom the Secretary of the Navy (or an officer of 
     the Navy acting on behalf of the Secretary) submitted to the 
     Committee on National Security of the House of 
     Representatives and the Committee on Armed Services of the 
     Senate, before the date of the enactment of this Act, a 
     notice as provided in section 1130(b) of title 10, United 
     States Code, that the award of the Distinguished Flying Cross 
     to that individual is warranted and that a waiver of time 
     restrictions prescribed by law for recommendation for such 
     award is recommended.

     SEC. 531. PROHIBITION ON ENTRY INTO CORRECTIONAL FACILITIES 
                   FOR PRESENTATION OF DECORATIONS TO PERSONS WHO 
                   COMMIT CERTAIN CRIMES BEFORE PRESENTATION.

       (a) Prohibition.--Chapter 57 of title 10, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1132. Presentation of decorations: prohibition on 
       entering into correctional facilities for certain 
       presentations

       ``(a) Prohibition.--No member of the armed forces may enter 
     into a Federal, State, or local correctional facility for 
     purposes of presenting a decoration to a person who has been 
     convicted of a serious violent felony.
       ``(b) Definitions.--In this section:
       ``(1) The term `decoration' means any decoration or award 
     that may be presented or awarded to a member of the armed 
     forces.
       ``(2) The term `serious violent felony' has the meaning 
     given that term in section 3359(c)(2)(F) of title 18.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of that chapter is amended by adding at the end the 
     following:

``1132. Presentation of decorations: prohibition on entering into 
              correctional facilities for certain presentations.''.

     SEC. 532. ADVANCEMENT OF BENJAMIN O. DAVIS, JUNIOR, TO GRADE 
                   OF GENERAL.

       (a) Authority.--The President is authorized to advance 
     Benjamin O. Davis, Junior, to the grade of general on the 
     retired list of the Air Force.
       (b) Additional Benefits Not To Accrue.--An advancement of 
     Benjamin O. Davis, Junior, to the grade of general on the 
     retired list of the Air Force under subsection (a) shall not 
     increase or change the compensation or benefits from the 
     United States to which any person is now or may in the future 
     be entitled based upon the military service of the said 
     Benjamin O. Davis, Junior.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

     SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1999.

       (a) Waiver of Section 1009 Adjustment.--Any adjustment 
     required by section 1009 of title 37, United States Code, in 
     the rates of monthly basic pay authorized members of the 
     uniformed services by section 203(a) of such title to become 
     effective during fiscal year 1999 shall not be made.
       (b) Increase in Basic Pay.--Effective on January 1, 1999, 
     the rates of basic pay of members of the uniformed services 
     are increased by 3.6 percent.
       (c) Offsetting Reductions in Authorizations of 
     Appropriations.--(1) Notwithstanding any other provision of 
     title I, the total amount authorized to be appropriated under 
     title II is hereby reduced by $150,000,000.
       (2) Notwithstanding any other provision of title II, the 
     total amount authorized to be appropriated under title II is 
     hereby reduced by $275,000,000.

     SEC. 602. RATE OF PAY FOR CADETS AND MIDSHIPMEN AT THE 
                   SERVICE ACADEMIES.

       (a) Increased Rate.--Section 203(c) of title 37, United 
     States Code, is amended by striking out ``$558.04'' and 
     inserting in lieu thereof ``$600.00''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 1999.

     SEC. 603. PAYMENTS FOR MOVEMENTS OF HOUSEHOLD GOODS ARRANGED 
                   BY MEMBERS.

       (a) Monetary Allowance Authorized.--Subsection (b)(1) of 
     section 406 of title 37, United States Code, is amended--
       (1) in subparagraph (A)--
       (A) by striking out ``, or reimbursement therefor,''; and
       (B) by inserting after the second sentence the following: 
     ``Alternatively, a member may be paid reimbursement or a 
     monetary allowance under subparagraph (F).''; and
       (2) by adding at the end the following:
       ``(F) A member entitled to transportation of baggage and 
     household effects under subparagraph (A) may, as an 
     alternative to the provision of transportation, be paid 
     reimbursement or, at the member's request, a monetary 
     allowance in advance for the cost of transportation of the 
     baggage and household effects. The monetary allowance may be 
     paid only if the amount of the allowance does not exceed the 
     cost that would be incurred by the Government under 
     subparagraph (A) for the transportation of the baggage and 
     household effects. Appropriations available to the Department 
     of Defense, the Department of Transportation, and the 
     Department of Health and Human Services for providing 
     transportation of baggage or household effects of members of 
     the uniformed services shall be available to pay a 
     reimbursement or monetary allowance under this subparagraph. 
     The Secretary concerned may prescribe the manner in which the 
     risk of liability for damage, destruction, or loss of baggage 
     or household effects arranged, packed, crated, or loaded by a 
     member is allocated among the member, the United States, and 
     any contractor when a reimbursement or monetary allowance is 
     elected under this subparagraph.''.
       (b) Repeal of Superseded Provision.--Such section is 
     further amended by striking out subsection (j).

     SEC. 604. LEAVE WITHOUT PAY FOR SUSPENDED ACADEMY CADETS AND 
                   MIDSHIPMEN.

       (a) Authority.--Section 702 of title 10, United States 
     Code, is amended--
       (1) by designating the second sentence of subsection (b) as 
     subsection (d);
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Leave Without Pay.--(1) Under regulations prescribed 
     under subsection (d), the Superintendent of the United States 
     Military Academy, the United States Naval Academy, the United 
     States Air Force Academy, or the United States Coast Guard 
     Academy may order a cadet or midshipman of the Academy to be 
     placed on leave involuntarily for any period during which the 
     cadet or midshipman is suspended from duty at the Academy--
       ``(A) pending separation from the Academy;
       ``(B) pending return to the Academy to repeat an academic 
     semester or year; or
       ``(C) for other good cause.
       ``(2) A cadet or midshipman placed on involuntary leave 
     under paragraph (1) is not entitled to any pay under section 
     230(c) of title 37 for the period of the leave.
       ``(3) A return of a cadet or midshipman to a pay status at 
     the Academy from an involuntary leave status under paragraph 
     (1) does not restore any entitlement of the cadet or 
     midshipman to pay for the period of the involuntary leave.''.
       (b) Subsection Headings.--Such section, as amended by 
     subsection (a), is further amended--
       (1) in subsection (a), by inserting ``Graduation Leave.--'' 
     after ``(a)'';
       (2) in subsection (c), by inserting ``Inapplicable Leave 
     Provisions.--'' after ``(c)''; and
       (3) in subsection (d), by inserting ``Regulations.--'' 
     after ``(d)''.

           Subtitle B--Bonuses and Special and Incentive Pays

     SEC. 611. THREE-MONTH EXTENSION OF CERTAIN BONUSES AND 
                   SPECIAL PAY AUTHORITIES FOR RESERVE FORCES.

       (a) Special Pay for Health Professionals in Critically 
     Short Wartime Specialties.--Section 302g(f) of title 37, 
     United States Code, is amended by striking out ``September 
     30, 1999'' and inserting in lieu thereof ``December 31, 
     1999''.
       (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) 
     of title 37, United States Code, is amended by striking out 
     ``September 30, 1999'' and inserting in lieu thereof 
     ``December 31, 1999''.
       (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1999'' and inserting in lieu thereof 
     ``December 31, 1999''.

[[Page S7485]]

       (d) Special Pay for Enlisted Members Assigned to Certain 
     High Priority Units.--Section 308d(c) of title 37, United 
     States Code, is amended by striking out ``September 30, 
     1999'' and inserting in lieu thereof ``December 31, 1999''.
       (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1999'' and inserting in lieu thereof 
     ``December 31, 1999''.
       (f) Ready Reserve Enlistment and Reenlistment Bonus.--
     Section 308h(g) of title 37, United States Code, is amended 
     by striking out ``September 30, 1999'' and inserting in lieu 
     thereof ``December 31, 1999''.
       (g) Prior Service Enlistment Bonus.--Section 308i(f) of 
     title 37, United States Code, as redesignated by section 622, 
     is amended by striking out ``September 30, 1999'' and 
     inserting in lieu thereof ``December 31, 1999''.
       (h) Repayment of Education Loans for Certain Health 
     Professionals Who Serve in the Selected Reserve.--Section 
     16302(d) of title 10, United States Code, is amended by 
     striking out ``October 1, 1999'' and inserting in lieu 
     thereof ``January 1, 2000''.

     SEC. 612. THREE-MONTH EXTENSION OF CERTAIN BONUSES AND 
                   SPECIAL PAY AUTHORITIES FOR NURSE OFFICER 
                   CANDIDATES, REGISTERED NURSES, AND NURSE 
                   ANESTHETISTS.

       (a) Nurse Officer Candidate Accession Program.--Section 
     2130a(a)(1) of title 10, United States Code, is amended by 
     striking out ``September 30, 1999'' and inserting in lieu 
     thereof ``December 31, 1999''.
       (b) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking out ``September 30, 1999'' and inserting in lieu 
     thereof ``December 31, 1999''.
       (c) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of title 37, United States Code, is amended by 
     striking out ``September 30, 1999'' and inserting in lieu 
     thereof ``December 31, 1999''.

     SEC. 613. THREE-MONTH EXTENSION OF AUTHORITIES RELATING TO 
                   PAYMENT OF OTHER BONUSES AND SPECIAL PAYS.

       (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1999,'' and inserting in lieu thereof 
     ``December 31, 1999,''.
       (b) Reenlistment Bonus for Active Members.--Section 308(g) 
     of title 37, United States Code, is amended by striking out 
     ``September 30, 1999'' and inserting in lieu thereof 
     ``December 31, 1999''.
       (c) Enlistment Bonuses for Members With Critical Skills.--
     Sections 308a(c) and 308f(c) of title 37, United States Code, 
     are each amended by striking out ``September 30, 1999'' and 
     inserting in lieu thereof ``December 31, 1999''.
       (d) Special Pay for Nuclear-Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of title 37, United 
     States Code, is amended by striking out ``September 30, 
     1999'' and inserting in lieu thereof ``December 31, 1999''.
       (e) Nuclear Career Accession Bonus.--Section 312b(c) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1999'' and inserting in lieu thereof 
     ``December 31, 1999''.
       (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of title 37, United States Code, is amended by striking out 
     ``October 1, 1999'' and inserting in lieu thereof ``October 
     1, 1998, and the 15-month period beginning on that date and 
     ending on December 31, 1999''.

     SEC. 614. ELIGIBILITY OF RESERVES FOR SELECTIVE REENLISTMENT 
                   BONUS WHEN REENLISTING OR EXTENDING TO PERFORM 
                   ACTIVE GUARD AND RESERVE DUTY.

       Section 308(a)(1)(D) of title 37, United States Code, is 
     amended by inserting after ``a regular component of the 
     service concerned'' the following: ``, or in a reserve 
     component of the service concerned in the case of a member 
     reenlisting or extending to perform active Guard and Reserve 
     duty (as defined in section 101(d)(6) of title 10),''.

     SEC. 615. REPEAL OF TEN-PERCENT LIMITATION ON PAYMENTS OF 
                   SELECTIVE REENLISTMENT BONUSES IN EXCESS OF 
                   $20,000.

       Section 308(b) of title 37, United States Code, is 
     amended--
       (1) by striking out paragraph (2); and
       (2) in paragraph (1), by striking out ``(1)''.

     SEC. 616. INCREASE OF MAXIMUM AMOUNT AUTHORIZED FOR ARMY 
                   ENLISTMENT BONUS.

       Section 308f(a) of title 37, United States Code, is amended 
     by striking out ``$4,000'' and inserting in lieu thereof 
     ``$6,000''.

     SEC. 617. EDUCATION LOAN REPAYMENT PROGRAM FOR HEALTH 
                   PROFESSIONS OFFICERS SERVING IN SELECTED 
                   RESERVE.

       (a) Eligible Persons.--Subsection (b)(2) of section 16302 
     of title 10, United States Code, is amended by inserting ``, 
     or is enrolled in a program of education leading to 
     professional qualifications,'' after ``possesses professional 
     qualifications''.
       (b) Increased Benefits.--Subsection (c) of such section is 
     amended--
       (1) in paragraph (2), by striking out ``$3,000'' and 
     inserting in lieu thereof ``$20,000''; and
       (2) in paragraph (3), by striking out ``$20,000'' and 
     inserting in lieu thereof ``$50,000''.

     SEC. 618. INCREASE IN AMOUNT OF BASIC EDUCATIONAL ASSISTANCE 
                   UNDER ALL-VOLUNTEER FORCE PROGRAM FOR PERSONNEL 
                   WITH CRITICALLY SHORT SKILLS OR SPECIALTIES.

       Section 3015(d) of title 38, United States Code, is amended 
     by striking out ``$700'' and inserting in lieu thereof 
     ``$950''.

     SEC. 619. RELATIONSHIP OF ENTITLEMENTS TO ENLISTMENT BONUSES 
                   AND BENEFITS UNDER THE ALL-VOLUNTEER FORCE 
                   EDUCATIONAL ASSISTANCE PROGRAM.

       (a) Entitlements Not Exclusive.--(1) Subchapter II of 
     chapter 30 of title 38, United States Code, is amended by 
     adding at the end the following:

     ``Sec. 3019A. Relationship to entitlement to certain 
       enlistment bonuses

       ``The entitlement of an individual to benefits under this 
     chapter is not affected by receipt by that individual of an 
     enlistment bonus under section 308a or 308f of title 37.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     3019 the following:

``3019A. Relationship to entitlement to certain enlistment bonuses.''.
       (b) Repeal of Related Limitation.--Section 8013(a) of 
     Public Law 105-56 (111 Stat. 1222) is amended--
       (1) by striking out ``of this Act--'' and all that follows 
     through ``nor shall any amounts'' and inserting in lieu 
     thereof ``of this Act enlists in the armed services for a 
     period of active duty of less that three years, nor shall any 
     amounts''; and
       (2) in the first proviso, by striking out ``in the case of 
     a member covered by clause (1),''.

     SEC. 620. HARDSHIP DUTY PAY.

       (a) Duty for Which Pay Authorized.--Subsection (a) of 
     section 305 of title 37, United States Code, is amended by 
     striking out ``on duty at a location'' and all that follows 
     and inserting in lieu thereof ``performing duty in the United 
     States or outside the United States that is designated by the 
     Secretary of Defense as hardship duty.''.
       (b) Repeal of Exception for Members Receiving Career Sea 
     Pay.--Subsection (c) of such section is repealed.
       (c) Conforming Amendments.--(1) Subsections (b) and (d) of 
     such section are amended by striking out ``hardship duty 
     location pay'' and inserting in lieu thereof ``hardship duty 
     pay''.
       (2) Subsection (d) of such section is redesignated as 
     subsection (c).
       (3) The heading for such section is amended by striking out 
     ``location''.
       (4) Section 907(d) of title 37, United States Code, is 
     amended by striking out ``duty at a hardship duty location'' 
     and inserting in lieu thereof ``hardship duty''.
       (d) Clerical Amendment.--The item relating to section 305 
     in the table of sections at the beginning of chapter 5 of 
     such title is amended to read as follows:

``305. Special pay: hardship duty pay.''.

     SEC. 620A. INCREASED HAZARDOUS DUTY PAY FOR AERIAL FLIGHT 
                   CREWMEMBERS IN PAY GRADES E-4 TO E-9.

       (a) Rates.--The table in section 301(b) of title 37, United 
     States Code, is amended by striking out the items relating to 
     pay grades E-4, E-5, E-6, E-7, E-8, and E-9, and inserting in 
     lieu thereof the following:

 ``E-9..............................................................240
 E-8................................................................240
 E-7................................................................240
 E-6................................................................215
 E-5................................................................190
 E-4.............................................................165''.
       (b) Effective Date.--This section and the amendment made by 
     this section shall take effect on October 1, 1998, and shall 
     apply with respect to months beginning on or after that date.

     SEC. 620B. DIVING DUTY SPECIAL PAY FOR DIVERS HAVING DIVING 
                   DUTY AS A NONPRIMARY DUTY.

       (a) Eligibility for Maintaining Proficiency.--Section 
     304(a)(3) of title 37, United States Code, is amended to read 
     as follows:
       ``(3) either--
       ``(A) actually performs diving duty while serving in an 
     assignment for which diving is a primary duty; or
       ``(B) meets the requirements to maintain proficiency as 
     described in paragraph (2) while serving in an assignment 
     that includes diving duty other than as a primary duty.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 1998, and shall apply with 
     respect to months beginning on or after that date.

     SEC. 620C. RETENTION INCENTIVES INITIATIVE FOR CRITICALLY 
                   SHORT MILITARY OCCUPATIONAL SPECIALTIES.

       (a) Requirement for New Incentives.--The Secretary of 
     Defense shall establish and provide for members of the Armed 
     Forces qualified in critically short military occupational 
     specialties a series of new incentives that the Secretary 
     considers potentially effective for increasing the rates at 
     which those members are retained in the Armed Forces for 
     service in such specialties.
       (b) Critically Short Military Occupational Specialties.--
     For the purposes of this section, a military occupational 
     specialty is a critically short military occupational 
     specialty for an armed force if the number of members 
     retained in that armed force in fiscal year 1998 for service 
     in that specialty is less than 50 percent of the number of 
     members of that armed force that were projected to be 
     retained in that armed

[[Page S7486]]

     force for service in the specialty by the Secretary of the 
     military department concerned as of October 1, 1997.
       (c) Incentives.--It is the sense of Congress that, among 
     the new incentives established and provided under this 
     section, the Secretary of Defense should include the 
     following incentives:
       (1) Family support and leave allowances.
       (2) Increased special reenlistment or retention bonuses.
       (3) Repayment of educational loans.
       (4) Priority of selection for assignment to preferred 
     permanent duty station or for extension at permanent duty 
     station.
       (5) Modified leave policies.
       (6) Special consideration for Government housing or 
     additional housing allowances.
       (d) Relationship to Other Incentives.--Incentives provided 
     under this section are in addition to any special pay or 
     other benefit that is authorized under any other provision of 
     law.
       (e) Reports.--(1) Not later than December 1, 1998, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report that identifies, for each of the 
     Armed Forces, the critically short military occupational 
     specialties to which incentives under this section are to 
     apply.
       (2) Not later than April 15, 1999, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     that specifies, for each of the Armed Forces, the incentives 
     that are to be provided under this section.

            Subtitle C--Travel and Transportation Allowances

     SEC. 621. TRAVEL AND TRANSPORTATION FOR REST AND RECUPERATION 
                   IN CONNECTION WITH CONTINGENCY OPERATIONS AND 
                   OTHER DUTY.

       Section 411c of title 37, United States Code, is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B); and
       (B) by inserting ``In General.--(1)'' after ``(a)'';
       (2) in subsection (b), by striking out ``(b) The 
     transportation authorized by this section'' and inserting in 
     lieu thereof ``(2) The transportation authorized by paragraph 
     (1)''; and
       (3) by adding at the end the following:
       ``(b) Contingency Operations and Other Special 
     Situations.--(1) Under uniform regulations prescribed by the 
     Secretaries concerned, a member of the armed forces serving a 
     tour of duty at a duty station, and under conditions, 
     described in paragraph (2) may be paid for or provided 
     transportation to a location described in subsection (a)(1) 
     as part of a program of rest and recuperation specifically 
     authorized for members of the armed forces serving under 
     those conditions at that duty station by the Secretary 
     concerned in advance of the commencement of the member's 
     travel.
       ``(2) Paragraph (1) applies to a member of the armed forces 
     serving at a duty station outside the United States if--
       ``(A) the member is participating in a contingency 
     operation at or from that duty station; or
       ``(B) the payment for or provision of transportation would 
     be in the best interests of members of the armed forces and 
     the United States because of unusual conditions at the duty 
     station, as determined by the Secretary concerned.
       ``(3) Transportation may not be paid for or provided to a 
     member under this subsection for travel that begins--
       ``(A) more than 24 months after the commencement of the 
     tour of duty for which the transportation is authorized; or
       ``(B) after the tour of duty ends.
       ``(4) The transportation authorized by this subsection is 
     limited to one round-trip during any tour of at least 6, but 
     less than 24, consecutive months.
       ``(5) Transportation paid for or provided to a member under 
     this subsection may not be counted as transportation for 
     which the member is eligible under subsection (a).''.

     SEC. 622. PAYMENT FOR TEMPORARY STORAGE OF BAGGAGE OF 
                   DEPENDENT STUDENT NOT TAKEN ON ANNUAL TRIP TO 
                   OVERSEAS DUTY STATION OF SPONSOR.

       Section 430(b) of title 37, United States Code, is amended 
     by striking out the second sentence and inserting in lieu 
     thereof the following: ``The allowance authorized by this 
     section may be prescribed by the Secretaries concerned as 
     transportation in kind or reimbursement therefor, including 
     an amount for the temporary storage of any baggage not taken 
     with the child on the annual trip if determined advantageous 
     to the Government.''.

     SEC. 623. COMMERCIAL TRAVEL OF RESERVES AT FEDERAL SUPPLY 
                   SCHEDULE RATES FOR ATTENDANCE AT INACTIVE DUTY 
                   TRAINING ASSEMBLIES.

       (a) Authority.--Chapter 1217 of title 10, United States 
     Code is amended by adding at the end the following:

     ``Sec. 12603. Commercial travel at Federal supply schedule 
       rates for attendance at inactive duty training assemblies

       ``(a) Federal Supply Schedule Travel.--Commercial travel 
     under Federal supply schedules is authorized for the travel 
     of a Reserve to the location of inactive duty training to be 
     performed by the Reserve or from that location upon 
     completion of the training.
       ``(b) Regulations.--The Secretary of Defense shall 
     prescribe in regulations the requirements, conditions, and 
     restrictions for travel under the authority of subsection (a) 
     that the Secretary considers appropriate. The regulations 
     shall include policies and procedures for preventing abuses 
     of the travel authority.
       ``(c) Reimbursement Not Authorized.--A Reserve is not 
     entitled to Government reimbursement for the cost of travel 
     authorized under subsection (a).
       ``(d) Treatment of Transportation as Use by Military 
     Departments.--For the purposes of section 201(a) of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 481(a)), travel authorized under subsection (a) shall 
     be treated as transportation for the use of a military 
     department.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``12603. Commercial travel at Federal supply schedule rates for 
              attendance at inactive duty training assemblies.''.

    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

     SEC. 631. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

       (a) Paid Up at 30 Years of Service and Age 70.--Section 
     1452 of title 10, United States Code, is amended by adding at 
     the end the following new subsection:
       ``(j) Coverage Paid Up at 30 Years and Attainment of Age 
     70.--(1) Coverage of a survivor of a member under the Plan 
     shall be considered paid up as of the end of the later of--
       ``(A) the 360th month in which the member's retired pay has 
     been reduced under this section; or
       ``(B) the month in which the member attains 70 years of 
     age.
       ``(2) The retired pay of a member shall not be reduced 
     under this section to provide coverage of a survivor under 
     the Plan after the month when the coverage is considered paid 
     up under paragraph (1).''.
       (b) Effective Date.--Section 1452(j) of title 10, United 
     States Code (as added by subsection (a)), shall take effect 
     on October 1, 2003.

     SEC. 632. COURT-REQUIRED SURVIVOR BENEFIT PLAN COVERAGE 
                   EFFECTUATED THROUGH ELECTIONS AND DEEMED 
                   ELECTIONS.

       (a) Elimination of Disparity in Effective Date 
     Provisions.--Section 1448(b)(3) of title 10, United States 
     Code, is amended--
       (1) in subparagraph (C)--
       (A) by striking out the second sentence; and
       (B) by striking out ``effective date,'' in the heading; and
       (2) by adding at the end the following:
       ``(E) Effective date.--An election under this paragraph--
       ``(i) in the case of a person required (as described in 
     section 1450(f)(3)(B) of this title) to make the election, is 
     effective as of the first day of the first month which begins 
     after the date of the court order or filing that requires the 
     election; and
       ``(ii) in all other cases, is effective as of the first day 
     of the first calendar month following the month in which the 
     election is received by the Secretary concerned.''.
       (b) Conformity by Cross Reference.--Section 1450(f)(3)(D) 
     of such title is amended by striking out ``the first day of 
     the first month which begins after the date of the court 
     order or filing involved'' and inserting in lieu thereof 
     ``the day referred to in section 1448(b)(3)(E)(i) of this 
     title''.

     SEC. 633. RECOVERY, CARE, AND DISPOSITION OF REMAINS OF 
                   MEDICALLY RETIRED MEMBER WHO DIES DURING 
                   HOSPITALIZATION THAT BEGINS WHILE ON ACTIVE 
                   DUTY.

       (a) In General.--Section 1481(a)(7) of title 10, United 
     States Code, is amended to read as follows:
       ``(7) A person who--
       ``(A) dies as a retired member of an armed force under the 
     Secretary's jurisdiction during a continuous hospitalization 
     of the member as a patient in a United States hospital that 
     began while the member was on active duty for a period of 
     more than 30 days; or
       ``(B) is not covered by subparagraph (A) and, while in a 
     retired status by reason of eligibility to retire under 
     chapter 61 of this title, dies during a continuous 
     hospitalization of the person that began while the person was 
     on active duty as a Regular of an armed force, or a member of 
     an armed force without component, under the Secretary's 
     jurisdiction.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on the date of the enactment of this Act and 
     applies with respect to deaths occurring on or after that 
     date.

     SEC. 634. SURVIVOR BENEFIT PLAN OPEN ENROLLMENT PERIOD.

       (a) Persons Not Currently Participating in Survivor Benefit 
     Plan.--
       (1) Election of sbp coverage.--An eligible retired or 
     former member may elect to participate in the Survivor 
     Benefit Plan during the open enrollment period specified in 
     subsection (d).
       (2) Election of supplemental annuity coverage.--An eligible 
     retired or former member who elects under paragraph (1) to 
     participate in the Survivor Benefit Plan may also elect 
     during the open enrollment period to participate in the 
     Supplemental Survivor Benefit Plan.
       (3) Eligible retired or former member.--For purposes of 
     paragraphs (1) and (2), an eligible retired or former member 
     is a member

[[Page S7487]]

     or former member of the uniformed services who on the day 
     before the first day of the open enrollment period is not a 
     participant in the Survivor Benefit Plan and--
       (A) is entitled to retired pay; or
       (B) would be entitled to retired pay under chapter 1223 of 
     title 10, United States Code (or chapter 67 of such title as 
     in effect before October 5, 1994), but for the fact that such 
     member or former member is under 60 years of age.
       (4) Status under sbp of persons making elections.--
       (A) Standard annuity.--A person making an election under 
     paragraph (1) by reason of eligibility under paragraph (3)(A) 
     shall be treated for all purposes as providing a standard 
     annuity under the Survivor Benefit Plan.
       (B) Reserve-component annuity.--A person making an election 
     under paragraph (1) by reason of eligibility under paragraph 
     (3)(B) shall be treated for all purposes as providing a 
     reserve-component annuity under the Survivor Benefit Plan.
       (b) Manner of Making Elections.--
       (1) In general.--An election under this section must be 
     made in writing, signed by the person making the election, 
     and received by the Secretary concerned before the end of the 
     open enrollment period. Except as provided in paragraph (2), 
     any such election shall be made subject to the same 
     conditions, and with the same opportunities for designation 
     of beneficiaries and specification of base amount, that apply 
     under the Survivor Benefit Plan or the Supplemental Survivor 
     Benefit Plan, as the case may be. A person making an election 
     under subsection (a) to provide a reserve-component annuity 
     shall make a designation described in section 1448(e) of 
     title 10, United States Code.
       (2) Election must be voluntary.--An election under this 
     section is not effective unless the person making the 
     election declares the election to be voluntary. An election 
     to participate in the Survivor Benefit Plan under this 
     section may not be required by any court. An election to 
     participate or not to participate in the Survivor Benefit 
     Plan is not subject to the concurrence of a spouse or former 
     spouse of the person.
       (c) Effective Date for Elections.--Any such election shall 
     be effective as of the first day of the first calendar month 
     following the month in which the election is received by the 
     Secretary concerned.
       (d) Open Enrollment Period Defined.--The open enrollment 
     period is the one-year period beginning on March 1, 1999.
       (e) Effect of Death of Person Making Election Within Two 
     Years of Making Election.--If a person making an election 
     under this section dies before the end of the two-year period 
     beginning on the effective date of the election, the election 
     is void and the amount of any reduction in retired pay of the 
     person that is attributable to the election shall be paid in 
     a lump sum to the person who would have been the deceased 
     person's beneficiary under the voided election if the 
     deceased person had died after the end of such two-year 
     period.
       (f) Applicability of Certain Provisions of Law.--The 
     provisions of sections 1449, 1453, and 1454 of title 10, 
     United States Code, are applicable to a person making an 
     election, and to an election, under this section in the same 
     manner as if the election were made under the Survivor 
     Benefit Plan or the Supplemental Survivor Benefit Plan, as 
     the case may be.
       (g) Premiums for Open Enrollment Election.--
       (1) Premiums to be charged.--The Secretary of Defense shall 
     prescribe in regulations premiums which a person electing 
     under this section shall be required to pay for participating 
     in the Survivor Benefit Plan pursuant to the election. The 
     total amount of the premiums to be paid by a person under the 
     regulations shall be equal to the sum of--
       (A) the total amount by which the retired pay of the person 
     would have been reduced before the effective date of the 
     election if the person had elected to participate in the 
     Survivor Benefit Plan (for the same base amount specified in 
     the election) at the first opportunity that was afforded the 
     member to participate under chapter 73 of title 10, United 
     States Code;
       (B) interest on the amounts by which the retired pay of the 
     person would have been so reduced, computed from the dates on 
     which the retired pay would have been so reduced at such rate 
     or rates and according to such methodology as the Secretary 
     of Defense determines reasonable; and
       (C) any additional amount that the Secretary determines 
     necessary to protect the actuarial soundness of the 
     Department of Defense Military Retirement Fund against any 
     increased risk for the fund that is associated with the 
     election.
       (2) Premiums to be credited to retirement fund.--Premiums 
     paid under the regulations shall be credited to the 
     Department of Defense Military Retirement Fund.
       (h) Definitions.--In this section:
       (1) The term ``Survivor Benefit Plan'' means the program 
     established under subchapter II of chapter 73 of title 10, 
     United States Code.
       (2) The term ``Supplemental Survivor Benefit Plan'' means 
     the program established under subchapter III of chapter 73 of 
     title 10, United States Code.
       (3) The term ``retired pay'' includes retainer pay paid 
     under section 6330 of title 10, United States Code.
       (4) The terms ``uniformed services'' and ``Secretary 
     concerned'' have the meanings given those terms in section 
     101 of title 37, United States Code.
       (5) The term ``Department of Defense Military Retirement 
     Fund'' means the Department of Defense Military Retirement 
     Fund established under section 1461(a) of title 10, United 
     States Code.

     SEC. 635. ELIGIBILITY FOR PAYMENTS OF CERTAIN SURVIVORS OF 
                   CAPTURED AND INTERNED VIETNAMESE OPERATIVES WHO 
                   WERE UNMARRIED AND CHILDLESS AT DEATH.

       Section 657(b) of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2585) is 
     amended by adding at the end the following:
       ``(3) In the case of a decedent who had not been married at 
     the time of death--
       ``(A) to the surviving parents; or
       ``(B) if there are no surviving parents, to the surviving 
     siblings by blood of the decedent, in equal shares.''.

     SEC. 636. CLARIFICATION OF RECIPIENT OF PAYMENTS TO PERSONS 
                   CAPTURED OR INTERNED BY NORTH VIETNAM.

       Section 657(f)(1) of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2585) is 
     amended by striking out ``The actual disbursement'' and 
     inserting in lieu thereof ``Notwithstanding any agreement 
     (including a power of attorney) to the contrary, the actual 
     disbursement''.

     SEC. 637. PRESENTATION OF UNITED STATES FLAG TO MEMBERS OF 
                   THE ARMED FORCES.

       (a) Army.--(1) Chapter 353 of title 10, United States Code, 
     is amended by inserting after the table of sections the 
     following:

     ``Sec. 3681. Presentation of flag upon retirement at end of 
       active duty service

       ``(a) Requirement.--The Secretary of the Army shall present 
     a United States flag to a member of any component of the Army 
     upon the release of the member from active duty for 
     retirement.
       ``(b) Multiple Presentations Not Authorized.--A member is 
     not eligible for a presentation of a flag under subsection 
     (a) if the member has previously been presented a flag under 
     this section or section 6141 or 8681 of this title.
       ``(c) No Cost to Recipient.--The presentation of a flag 
     under his section shall be at no cost to the recipient.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     3684 the following:

``3681. Presentation of flag upon retirement at end of active duty 
              service.''.
       (b) Navy and Marine Corps.--(1) Chapter 561 of title 10, 
     United States Code, is amended by inserting after the table 
     of sections the following:

     ``Sec. 6141. Presentation of flag upon retirement at end of 
       active duty service

       ``(a) Requirement.--The Secretary of the Navy shall present 
     a United States flag to a member of any component of the Navy 
     or Marine Corps upon the release of the member from active 
     duty for retirement or for transfer to the Fleet Reserve or 
     the Fleet Marine Corps Reserve.
       ``(b) Multiple Presentations Not Authorized.--A member is 
     not eligible for a presentation of a flag under subsection 
     (a) if the member has previously been presented a flag under 
     this section or section 3681 or 8681 of this title.
       ``(c) No Cost to Recipient.--The presentation of a flag 
     under his section shall be at no cost to the recipient.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     6151 the following:

``6141. Presentation of flag upon retirement at end of active duty 
              service.''.
       (c) Air Force.--(1) Chapter 853 of title 10, United States 
     Code, is amended by inserting after the table of sections the 
     following:

     ``Sec. 8681. Presentation of flag upon retirement at end of 
       active duty service

       ``(a) Requirement.--The Secretary of the Air Force shall 
     present a United States flag to a member of any component of 
     the Air Force upon the release of the member from active duty 
     for retirement.
       ``(b) Multiple Presentations Not Authorized.--A member is 
     not eligible for a presentation of a flag under subsection 
     (a) if the member has previously been presented a flag under 
     this section or section 3681 or 6141 of this title.
       ``(c) No Cost to Recipient.--The presentation of a flag 
     under his section shall be at no cost to the recipient.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     8684 the following:

``8681. Presentation of flag upon retirement at end of active duty 
              service.''.
       (d) Requirement for Advance Appropriations.--The Secretary 
     of a military department may present flags under authority 
     provided the Secretary in section 3681, 6141, or 8681 title 
     10, United States Code (as added by this section), only to 
     the extent that funds for such presentations are appropriated 
     for that purpose in advance.
       (e) Effective Date.--Sections 3681, 6141, and 8681 of title 
     10, United States Code (as added by this section shall take 
     effect on October 1, 1998, and shall apply with respect to 
     releases described in those sections on or after that date.

[[Page S7488]]

     SEC. 638. ELIMINATION OF BACKLOG OF UNPAID RETIRED PAY.

       (a) Requirement.--The Secretary of the Army shall take such 
     actions as are necessary to eliminate, by December 31, 1998, 
     the backlog of unpaid retired pay for members and former 
     members of the Army (including members and former members of 
     the Army Reserve and the Army National Guard).
       (b) Report.--Not later than 30 days after the date of the 
     enactment of this Act, the Secretary of the Army shall submit 
     to Congress a report on the backlog of unpaid retired pay. 
     The report shall include the following:
       (1) The actions taken under subsection (a).
       (2) The extent of the remaining backlog.
       (3) A discussion of any additional actions that are 
     necessary to ensure that retired pay is paid in a timely 
     manner.
       (c) Funding.--Of the amount authorized to be appropriated 
     under section 421, $1,700,000 shall be available for carrying 
     out this section.

                       Subtitle E--Other Matters

     SEC. 641. DEFINITION OF POSSESSIONS OF THE UNITED STATES FOR 
                   PAY AND ALLOWANCES PURPOSES.

       Section 101(2) of title 37, United States Code, is amended 
     by striking out ``the Canal Zone,''.

     SEC. 642. FEDERAL EMPLOYEES' COMPENSATION COVERAGE FOR 
                   STUDENTS PARTICIPATING IN CERTAIN OFFICER 
                   CANDIDATE PROGRAMS.

       (a) Periods of Coverage.--Subsection (a)(2) of section 8140 
     of title 5, United States Code, is amended to read as 
     follows:
       ``(2) during the period of the member's attendance at 
     training or a practice cruise under chapter 103 of title 10, 
     beginning when the authorized travel to the training or 
     practice cruise begins and ending when authorized travel from 
     the training or practice cruise ends.''.
       (b) Line of Duty.--Subsection (b) of such section is 
     amended to read as follows:
       ``(b) For the purpose of this section, an injury, 
     disability, death, or illness of a member referred to in 
     subsection (a) may be considered as incurred or contracted in 
     line of duty only if the injury, disability, or death is 
     incurred, or the illness is contracted, by the member during 
     a period described in that subsection. Subject to review by 
     the Secretary of Labor, the Secretary of the military 
     department concerned (under regulations prescribed by that 
     Secretary), shall determine whether an injury, disability, or 
     death was incurred, or an illness was contracted, by a member 
     in line of duty.''.
       (c) Clarification of Casualties Covered.--Subsection (a) of 
     such section, as amended by subsection (a) of this section, 
     is further amended by inserting ``, or an illness 
     contracted,'' after ``death incurred'' in the matter 
     preceding paragraph (1).
       (d) Effective Date and Applicability.--The amendments made 
     by subsections (a) and (b) shall take effect on the date of 
     the enactment of this Act and apply with respect to injuries, 
     illnesses, disabilities, and deaths incurred or contracted on 
     or after that date.

     SEC. 643. AUTHORITY TO PROVIDE FINANCIAL ASSISTANCE FOR 
                   EDUCATION OF CERTAIN DEFENSE DEPENDENTS 
                   OVERSEAS.

       Section 1407(b) of the Defense Dependents' Education Act of 
     1978 (20 U.S.C. 926(b)) is amended--
       (1) by striking out ``(b) Under such circumstances as he 
     may by regulation prescribe, the Secretary of Defense'' and 
     inserting in lieu thereof ``(b) Tuition and Assistance When 
     Schools Unavailable.--(1) Under such circumstances as the 
     Secretary of Defense may prescribe in regulations, the 
     Secretary''; and
       (2) by adding at the end the following:
       ``(2)(A) The Secretary of Defense, and the Secretary of 
     Transportation with respect to the Coast Guard when it is not 
     operating as a service of the Navy, may provide financial 
     assistance to sponsors of dependents in overseas areas where 
     schools operated by the Secretary of Defense under subsection 
     (a) are not reasonably available in order to assist the 
     sponsors to defray the costs incurred by the sponsors for the 
     attendance of the dependents at schools in such areas other 
     than schools operated by the Secretary of Defense.
       ``(B) The Secretary of Defense and the Secretary of 
     Transportation shall each prescribe regulations relating to 
     the availability of financial assistance under subparagraph 
     (A). Such regulations shall, to the maximum extent 
     practicable, be consistent with Department of State 
     regulations relating to the availability of financial 
     assistance for the education of dependents of Department of 
     State personnel overseas.''.

     SEC. 644. VOTING RIGHTS OF MILITARY PERSONNEL.

       (a) Guarantee of Residency.--Article VII of the Soldiers' 
     and Sailors' Civil Relief Act of 1940 (50 U.S.C. App. 590 et 
     seq.) is amended by adding at the end the following:
       ``Sec. 704. (a) For purposes of voting for an office of the 
     United States or of a State, a person who is absent from a 
     State in compliance with military or naval orders shall not, 
     solely by reason of that absence--
       ``(1) be deemed to have lost a residence or domicile in 
     that State;
       ``(2) be deemed to have acquired a residence or domicile in 
     any other State; or
       ``(3) be deemed to have become resident in or a resident of 
     any other State.
       ``(b) In this section, the term `State' includes a 
     territory or possession of the United States, a political 
     subdivision of a State, territory, or possession, and the 
     District of Columbia.''.
       (b) State Responsibility To Guarantee Military Voting 
     Rights.--(1) Section 102 of the Uniformed and Overseas 
     Citizens Absentee Voting Act (42 U.S.C. 1973ff-1) is 
     amended--
       (A) by inserting ``(a) Elections for Federal Offices.--'' 
     before ``Each State shall--''; and
       (B) by adding at the end the following:
       ``(b) Elections for State and Local Offices.--Each State 
     shall--
       ``(1) permit absent uniformed services voters to use 
     absentee registration procedures and to vote by absentee 
     ballot in general, special, primary, and runoff elections for 
     State and local offices; and
       ``(2) accept and process, with respect to any election 
     described in paragraph (1), any otherwise valid voter 
     registration application from an absent uniformed services 
     voter if the application is received by the appropriate State 
     election official not less than 30 days before the 
     election.''.
       (2) The heading of title I of such Act is amended by 
     striking out ``FOR FEDERAL OFFICE''.

                         TITLE VII--HEALTH CARE

     SEC. 701. DEPENDENTS' DENTAL PROGRAM.

       (a) Inflation-Indexed Premium.--(1) Section 1076a(b)(2) of 
     title 10, United States Code, is amended--
       (A) by inserting ``(A)'' after ``(2)''; and
       (B) by adding at the end the following:
       ``(B) Effective as of January 1 of each year, the amount of 
     the premium required under subparagraph (A) shall be 
     increased by the percent equal to the lesser of--
       ``(i) the percent by which the rates of basic pay of 
     members of the uniformed services are increased on such date; 
     or
       ``(ii) the sum of one-half percent and the percent computed 
     under section 5303(a) of title 5 for the increase in rates of 
     basic pay for statutory pay systems for pay periods beginning 
     on or after such date.''.
       (2) The amendment made by subparagraph (B) of paragraph (1) 
     shall take effect on January 1, 1999, and shall apply to 
     months after 1998 as if such subparagraph had been in effect 
     since December 31, 1993.
       (b) Offer of Plan Under TRICARE.--(1) Section 1097 of such 
     title is amended by adding at the end the following:
       ``(f) Dependents' Dental Plan.--A basic dental benefits 
     plan established for eligible dependents under section 1076a 
     of this title may be offered under the TRICARE program.''.
       (2) Subsection (e) of such section is amended by adding at 
     the end the following: ``Charges for a basic dental benefits 
     plan offered under the TRICARE program pursuant to subsection 
     (f) shall be those provided for under section 1076a of this 
     title.''.

     SEC. 702. EXTENSION OF AUTHORITY FOR USE OF PERSONAL SERVICES 
                   CONTRACTS FOR PROVISION OF HEALTH CARE AT 
                   MILITARY ENTRANCE PROCESSING STATIONS AND 
                   ELSEWHERE OUTSIDE MEDICAL TREATMENT FACILITIES.

       Section 1091(a)(2) of title 10, United States Code, is 
     amended in the second sentence by striking out ``the end of 
     the one-year period beginning on the date of the enactment of 
     this paragraph'' and inserting in lieu thereof ``June 30, 
     1999''.

     SEC. 703. TRICARE PRIME AUTOMATIC ENROLLMENTS AND RETIREE 
                   PAYMENT OPTIONS.

       (a) Procedures.--(1) Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1097 the 
     following new section:

     ``Sec. 1097a. TRICARE Prime: automatic enrollments; payment 
       options

       ``(a) Automatic Enrollment of Certain Dependents.--Each 
     dependent of a member of the uniformed services in grade E4 
     or below who is entitled to medical and dental care under 
     section 1076(a)(2)(A) of this title and resides in the 
     catchment area of a facility of a uniformed service offering 
     TRICARE Prime shall be automatically enrolled in TRICARE 
     Prime at the facility. The Secretary concerned shall provide 
     written notice of the enrollment to the member. The 
     enrollment of a dependent of the member may be terminated by 
     the member or the dependent at any time.
       ``(b) Automatic Renewal of Enrollments of Covered 
     Beneficiaries.--(1) An enrollment of a covered beneficiary in 
     TRICARE Prime shall be automatically renewed upon the 
     expiration of the enrollment unless the renewal is declined.
       ``(2) Not later than 15 days before the expiration date for 
     an enrollment of a covered beneficiary in TRICARE Prime, the 
     Secretary concerned shall--
       ``(A) transmit a written notification of the pending 
     expiration and renewal of enrollment to the covered 
     beneficiary or, in the case of a dependent of a member of the 
     uniformed services, to the member; and
       ``(B) afford the beneficiary or member, as the case may be, 
     an opportunity to decline the renewal of enrollment.
       ``(c) Payment Options for Retirees.--A member or former 
     member of the uniformed services eligible for medical care 
     and dental care under section 1074(b) of this title may elect 
     to have any fee payable by the member or former member for an 
     enrollment in TRICARE Prime withheld from the member's 
     retired pay, retainer pay, or equivalent pay, as the case may 
     be, or to be paid from a financial institution through 
     electronic transfers of funds. The fee shall be paid in 
     accordance with the election.

[[Page S7489]]

       ``(d) Regulations.--The administering Secretaries shall 
     prescribe regulations, including procedures, for carrying out 
     this section.
       ``(e) Definitions.--In this section:
       ``(1) The term `TRICARE Prime' means the managed care 
     option of the TRICARE program.
       ``(2) The term `catchment area', with respect to a facility 
     of a uniformed service, means the service area of the 
     facility, as designated under regulations prescribed by the 
     administering Secretaries.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1097 the following new item:

1097a. TRICARE Prime: automatic enrollments; payment options.''.
       (b) Deadline for Implementation.--The regulations required 
     under subsection (d) of section 1097a of title 10, United 
     States Code (as added by subsection (a)), shall be prescribed 
     to take effect not later than January 1, 1999. The section 
     shall be applied under TRICARE Prime on and after the date on 
     which the regulations take effect.

     SEC. 704. LIMITED CONTINUED CHAMPUS COVERAGE FOR PERSONS 
                   UNAWARE OF A LOSS OF CHAMPUS COVERAGE RESULTING 
                   FROM ELIGIBILITY FOR MEDICARE.

       (a) Continuation of Eligibility.--The eligibility of a 
     person described in subsection (b) for care under CHAMPUS may 
     be continued under regulations prescribed by the 
     administering Secretaries if it is determined under the 
     regulations that the continuation of the eligibility is 
     appropriate in order to ensure that the person has adequate 
     access to health care.
       (b) Eligible Persons.--Subsection (a) applies to a person 
     who--
       (1) has been eligible for health care under CHAMPUS;
       (2) loses eligibility for health care under CHAMPUS solely 
     by reason of paragraph (1) of section 1086(d), United States 
     Code;
       (3) is unaware of the loss of eligibility; and
       (4) satisfies the conditions set forth in subparagraphs (A) 
     and (B) of paragraph (2) of such section 1086(d) at the time 
     health care is provided under CHAMPUS pursuant to a 
     continuation of eligibility in accordance with this section.
       (c) Period of Continued Eligibility.--A continuation of 
     eligibility under this section shall apply with regard to 
     health care provided on or after October 1, 1998, and before 
     July 1, 1999.
       (d) Definitions.--In this section:
       (1) The term ``administering Secretaries'' has the meaning 
     given such term in paragraph (3) of section 1072 of title 10, 
     United States Code.
       (2) The term ``CHAMPUS'' means the Civilian Health and 
     Medical Program of the Uniformed Services, as defined in 
     paragraph (4) of such section.

     SEC. 705. ENHANCED DEPARTMENT OF DEFENSE ORGAN AND TISSUE 
                   DONOR PROGRAM.

       (a) Findings.--Congress makes the following findings:
       (1) Organ and tissue transplantation is one of the most 
     remarkable medical success stories in the history of 
     medicine.
       (2) Each year, the number of people waiting for organ or 
     tissue transplantation increases. It is estimated that there 
     are approximately 39,000 patients, ranging in age from babies 
     to those in retirement, awaiting transplants of kidneys, 
     hearts, livers, and other solid organs.
       (3) The Department of Defense has made significant progress 
     in increasing the awareness of the importance of organ and 
     tissue donations among members of the Armed Forces.
       (4) The inclusion of organ and tissue donor elections in 
     the Defense Enrollment Eligibility Reporting System (DEERS) 
     central database through the Real-time Automated Personnel 
     Identification System (RAPIDS) represents a major step in 
     ensuring that organ and tissue donor elections are a matter 
     of record and are accessible in a timely manner.
       (b) Responsibilities of the Secretary of Defense.--The 
     Secretary of Defense shall ensure that the advanced systems 
     developed for recording Armed Forces members' personal data 
     and information (such as the SMARTCARD, MEDITAG, and Personal 
     Information Carrier) include the capability to record organ 
     and tissue donation elections.
       (c) Responsibilities of the Secretaries of the Military 
     Departments.--The Secretaries of the military departments 
     shall ensure that--
       (1) appropriate information about organ and tissue donation 
     is provided to each recruit and officer candidate of the 
     Armed Forces during initial training;
       (2) members of the Armed Forces are given recurring, 
     specific opportunities to elect to be organ or tissue donors 
     during service in the Armed Forces and upon retirement; and
       (3) members of the Armed Forces electing to be organ or 
     tissue donors are encouraged to advise their next of kin 
     concerning the donation decision and any subsequent change of 
     that decision.
       (d) Responsibilities of the Surgeons General of the 
     Military Department.--The Surgeons General of the Armed 
     Forces shall ensure that--
       (1) appropriate training is provided to enlisted and 
     officer medical personnel to facilitate the effective 
     operation of organ and tissue donation activities under 
     garrison conditions and, to the extent possible, under 
     operational conditions; and
       (2) medical logistical activities can, to the extent 
     possible without jeopardizing operational requirements, 
     support an effective organ and tissue donation program.
       (e) Report.--Not later than September 1, 1999, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on the status of the 
     implementation of this section.

     SEC. 706. JOINT DEPARTMENT OF DEFENSE AND DEPARTMENT OF 
                   VETERANS AFFAIRS REVIEWS RELATING TO 
                   INTERDEPARTMENTAL COOPERATION IN THE DELIVERY 
                   OF MEDICAL CARE.

       (a) Findings.--Congress makes the following findings:
       (1) The military health care system of the Department of 
     Defense and the Veterans Health Administration of the 
     Department of Veterans Affairs are national institutions that 
     collectively manage more than 1,500 hospitals, clinics, and 
     health care facilities worldwide to provide services to more 
     than 11,000,000 beneficiaries.
       (2) In the post-Cold War era, these institutions are in a 
     profound transition that involves challenging opportunities.
       (3) During the period from 1988 to 1998, the number of 
     military medical personnel has declined by 15 percent and the 
     number of military hospitals has been reduced by one-third.
       (4) During the two years since 1996, the Department of 
     Veterans Affairs has revitalized its structure by 
     decentralizing authority into 22 Veterans Integrated Service 
     Networks.
       (5) In the face of increasing costs of medical care, 
     increased demands for health care services, and increasing 
     budgetary constraints, the Department of Defense and the 
     Department of Veterans Affairs have embarked on a variety of 
     dynamic and innovative cooperative programs ranging from 
     shared services to joint venture operations of medical 
     facilities.
       (6) In 1984, there was a combined total of 102 Department 
     of Veterans Affairs and Department of Defense facilities with 
     sharing agreements. By 1997, that number had grown to 420. 
     During the six years from fiscal year 1992 through fiscal 
     year 1997, shared services increased from slightly over 3,000 
     services to more than 6,000 services ranging from major 
     medical and surgical services, laundry, blood, and laboratory 
     services to unusual speciality care services.
       (7) The Department of Defense and the Department of 
     Veterans Affairs are conducting four health care joint 
     ventures in New Mexico, Nevada, Texas, Oklahoma, and are 
     planning to conduct four more such ventures in Alaska, 
     Florida, Hawaii, and California.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Department of Defense and the Department of 
     Veterans Affairs are to be commended for the cooperation 
     between the two departments in the delivery of medical care, 
     of which the cooperation involved in the establishment and 
     operation of the Department of Defense and the Department of 
     Veterans Affairs Executive Council is a praiseworthy example;
       (2) the two departments are encouraged to continue to 
     explore new opportunities to enhance the availability and 
     delivery of medical care to beneficiaries by further 
     enhancing the cooperative efforts of the departments; and
       (3) enhanced cooperation is encouraged for--
       (A) the general areas of access to quality medical care, 
     identification and elimination of impediments to enhanced 
     cooperation, and joint research and program development; and
       (B) the specific areas in which there is significant 
     potential to achieve progress in cooperation in a short term, 
     including computerization of patient records systems, 
     participation of the Department of Veterans Affairs in the 
     TRICARE program, pharmaceutical programs, and joint physical 
     examinations.
       (c) Joint Survey of Populations Served.--(1) The Secretary 
     of Defense and the Secretary of Veterans Affairs shall 
     jointly conduct a survey of their respective medical care 
     beneficiary populations to identify, by category of 
     beneficiary (defined as the Secretaries consider 
     appropriate), the expectations of, requirements for, and 
     behavior patterns of the beneficiaries with respect to 
     medical care. The two Secretaries shall develop the protocol 
     for the survey jointly, but shall obtain the services of an 
     entity independent of the Department of Defense and the 
     Department of Veterans Affairs for carrying out the survey.
       (2) The survey shall include the following:
       (A) Demographic characteristics, economic characteristics, 
     and geographic location of beneficiary populations with 
     regard to catchment or service areas.
       (B) The types and frequency of care required by veterans, 
     retirees, and dependents within catchment or service areas of 
     Department of Defense and Veterans Affairs medical facilities 
     and outside those areas.
       (C) The numbers of, characteristics of, and types of 
     medical care needed by the veterans, retirees, and dependents 
     who, though eligible for medical care in Department of 
     Defense or Department of Veterans Affairs treatment 
     facilities or other federally funded medical programs, choose 
     not to seek medical care from those facilities or under those 
     programs, and the reasons for that choice.

[[Page S7490]]

       (D) The obstacles or disincentives for seeking medical care 
     from such facilities or under such programs that veterans, 
     retirees, and dependents perceive.
       (E) Any other matters that the Secretary of Defense and the 
     Secretary of Veterans Affairs consider appropriate for the 
     survey.
       (3) The Secretary of Defense and the Secretary of Veterans 
     Affairs shall submit a report on the results of the survey to 
     the appropriate committees of Congress. The report shall 
     contain the matters described in paragraph (2) and any 
     proposals for legislation that the Secretaries recommend for 
     enhancing Department of Defense and Department of Veterans 
     Affairs cooperative efforts with respect to the delivery of 
     medical care.
       (d) Review of Law and Policies.--(1) The Secretary of 
     Defense and the Secretary of Veterans Affairs shall jointly 
     conduct a review to identify impediments to cooperation 
     between the Department of Defense and the Department of 
     Veterans Affairs regarding the delivery of medical care. The 
     matters reviewed shall include the following:
       (A) All laws, policies, and regulations, and any attitudes 
     of beneficiaries of the health care systems of the two 
     departments, that have the effect of preventing the 
     establishment, or limiting the effectiveness, of cooperative 
     health care programs of the departments.
       (B) The requirements and practices involved in the 
     credentialling and licensure of health care providers.
       (C) The perceptions of beneficiaries in a variety of 
     categories (defined as the Secretaries consider appropriate) 
     regarding the various Federal health care systems available 
     for their use.
       (2) The Secretaries shall jointly submit a report on the 
     results of the review to the appropriate committees of 
     Congress. The report shall include any proposals for 
     legislation that the Secretaries recommend for eliminating or 
     reducing impediments to interdepartmental cooperation that 
     are identified during the review.
       (e) Participation in TRICARE.--(1) The Secretary of Defense 
     shall review the TRICARE program to identify opportunities 
     for increased participation by the Department of Veterans 
     Affairs in that program. The ongoing collaboration between 
     Department of Defense officials and Department of Veterans 
     Affairs officials regarding increasing the participation 
     shall be included among the matters reviewed.
       (2) The Secretary of Defense and the Secretary of Veterans 
     Affairs shall jointly submit to the appropriate committees of 
     Congress a semiannual report on the status of the review and 
     on efforts to increase the participation of the Department of 
     Veterans Affairs in the TRICARE program. No report is 
     required under this paragraph after the submission of a 
     semiannual report in which the Secretaries declare that the 
     Department of Veterans Affairs is participating in the 
     TRICARE program to the extent that can reasonably be expected 
     to be attained.
       (f) Pharmaceutical Benefits and Programs.--(1) The Federal 
     Pharmaceutical Steering Committee shall--
       (A) undertake a comprehensive examination of existing 
     pharmaceutical benefits and programs for beneficiaries of 
     Federal medical care programs, including matters relating to 
     the purchasing, distribution, and dispensing of 
     pharmaceuticals and the management of mail order 
     pharmaceuticals programs; and
       (B) review the existing methods for contracting for and 
     distributing medical supplies and services.
       (2) The committee shall submit a report on the results of 
     the examination to the appropriate committees of Congress.
       (g) Standardization of Physical Examinations for 
     Disability.--The Secretary of Defense and the Secretary of 
     Veterans Affairs shall submit to the appropriate committees 
     of Congress a report on the status of the efforts of the 
     Department of Defense and the Department of Veterans Affairs 
     to standardize physical examinations administered by the two 
     departments for the purpose of determining or rating 
     disabilities.
       (h) Appropriate Committees of Congress Defined.--For the 
     purposes of this section, the appropriate committees of 
     Congress are as follows:
       (1) The Committee on Armed Services and the Committee on 
     Veterans' Affairs of the Senate.
       (2) The Committee on National Security and the Committee on 
     Veterans' Affairs of the House of Representatives.
       (i) Deadlines for Submission of Reports.--(1) The report 
     required by subsection (c)(3) shall be submitted not later 
     than January 1, 2000.
       (2) The report required by subsection (d)(2) shall be 
     submitted not later than March 1, 1999.
       (3) The semiannual report required by subsection (e)(2) 
     shall be submitted not later than March 1 and September 1 of 
     each year.
       (4) The report on the examination required under subsection 
     (f) shall be submitted not later than 60 days after the 
     completion of the examination.
       (5) The report required by subsection (g) shall be 
     submitted not later than March 1, 1999.

     SEC. 707. DEMONSTRATION PROJECTS TO PROVIDE HEALTH CARE TO 
                   CERTAIN MEDICARE-ELIGIBLE BENEFICIARIES OF THE 
                   MILITARY HEALTH CARE SYSTEM.

       (a) In General.--(1) The Secretary of Defense shall, after 
     consultation with the other administering Secretaries, carry 
     out three demonstration projects (described in subsections 
     (d), (e), and (f)) in order to assess the feasibility and 
     advisability of providing certain medical care coverage to 
     the medicare-eligible individuals described in subsection 
     (b).
       (2) The Secretary shall commence the demonstration projects 
     not later than January 1, 2000, and shall terminate the 
     demonstration projects not later than December 31, 2003.
       (3) The aggregate costs incurred by the Secretary under the 
     demonstration projects in any year may not exceed 
     $60,000,000.
       (b) Eligible Individuals.--An individual eligible to 
     participate in a demonstration project under subsection (a) 
     is a member or former member of the uniformed services 
     described in section 1074(b) of title 10, United States Code, 
     a dependent of the member described in section 1076(a)(2)(B) 
     or 1076(b) of that title, or a dependent of a member of the 
     uniformed services who died while on active duty for a period 
     of more than 30 days, who--
       (1) is 65 years of age or older;
       (2) is entitled to hospital insurance benefits under part A 
     of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
     seq.);
       (3) is enrolled in the supplemental medical insurance 
     program under part B of such title XVIII (42 U.S.C. 1395j et 
     seq.); and
       (4) resides in an area of the demonstration project 
     selected by the Secretary under subsection (c).
       (c) Areas of Demonstration Projects.--(1) Subject to 
     paragraph (3), the Secretary shall carry out each 
     demonstration project under this section in two separate 
     areas selected by the Secretary.
       (2) Of the two areas selected for each demonstration 
     project--
       (A) one shall be an area outside the catchment area of a 
     military medical treatment facility in which--
       (i) no eligible organization has a contract in effect under 
     section 1876 of the Social Security Act (42 U.S.C. 1395mm) 
     and no Medicare+Choice organization has a contract in effect 
     under part C of title XVIII of that Act (42 U.S.C. 1395w-21); 
     or
       (ii) the aggregate number of enrollees with an eligible 
     organization with a contract in effect under section 1876 of 
     that Act or with a Medicare+Choice organization with a 
     contract in effect under part C of title XVIII of that Act is 
     less than 2.5 percent of the total number of individuals in 
     the area who are entitled to hospital insurance benefits 
     under part A of title XVIII of that Act; and
       (B) one shall be an area outside the catchment area of a 
     military medical treatment facility in which--
       (i) at least one eligible organization has a contract in 
     effect under section 1876 of that Act or one Medicare+Choice 
     organization has a contract in effect under part C of title 
     XVIII of that Act; and
       (ii) the aggregate number of enrollees with an eligible 
     organization with a contract in effect under section 1876 of 
     that Act or with a Medicare+Choice organization with a 
     contract in effect under part C of title XVIII of that Act 
     exceeds 10 percent of the total number of individuals in the 
     area who are entitled to hospital insurance benefits under 
     part A of title XVIII of that Act.
       (3) The Secretary may not carry out a demonstration project 
     under this section in any area in which the Secretary is 
     carrying out any other medical care demonstration project 
     unless the Secretary determines that the conduct of such 
     other medical care demonstration project will not interfere 
     with the conduct or evaluation of the demonstration project 
     under this section.
       (d) FEHBP as Supplement to Medicare Demonstration.--(1)(A) 
     Under one of the demonstration projects under this section, 
     the Secretary shall permit eligible individuals described in 
     subsection (b) who reside in the areas of the demonstration 
     project selected under subsection (c) to enroll in the health 
     benefits plans offered through the Federal Employees Health 
     Benefits program under chapter 89 of title 5, United States 
     Code.
       (B) The Secretary shall carry out the demonstration project 
     under this subsection under an agreement with the Office of 
     Personnel Management.
       (2)(A) An eligible individual described in paragraph (1) 
     shall not be required to satisfy any eligibility criteria 
     specified in chapter 89 of title 5, United States Code, as a 
     condition for enrollment in the health benefits plans offered 
     through the Federal Employee Health Benefits program under 
     the demonstration project under this subsection.
       (B) Each eligible individual who enrolls in a health 
     benefits plan under the demonstration project shall be 
     required to remain enrolled in the supplemental medical 
     insurance program under part B of title XVIII of the Social 
     Security Act while participating in the demonstration 
     project.
       (3)(A) The authority responsible for approving retired or 
     retainer pay or equivalent pay in the case of a member or 
     former member shall manage the participation of the members 
     or former members who enroll in health benefits plans offered 
     through the Federal Employee Health Benefits program pursuant 
     to paragraph (1).
       (B) Such authority shall distribute program information to 
     eligible individuals, process enrollment applications, 
     forward all required contributions to the Employees Health 
     Benefits Fund established under section 8909 of title 5, 
     United States Code, in a timely manner, assist in the 
     reconciliation of enrollment records with health plans, and

[[Page S7491]]

     prepare such reports as the Office of Personnel Management 
     may require in its administration of chapter 89 of such 
     title.
       (4)(A) The Office of Personnel Management shall require 
     health benefits plans under chapter 89 of title 5, United 
     States Code, that participate in the demonstration project to 
     maintain a separate risk pool for purposes of establishing 
     premium rates for eligible individuals who enroll in such 
     plans in accordance with this subsection.
       (B) The Office shall determine total subscription charges 
     for self only or for family coverage for eligible individuals 
     who enroll in a health benefits plan under chapter 89 of such 
     title in accordance with this subsection, which shall include 
     premium charges paid to the plan and amounts described in 
     section 8906(c) of title 5, United States Code, for 
     administrative expenses and contingency reserves.
       (5) The Secretary shall be responsible for the Government 
     contribution for an eligible individual who enrolls in a 
     health benefits plan under chapter 89 of title 5, United 
     States Code, in accordance with this subsection, except that 
     the amount of the contribution may not exceed the amount of 
     the Government contribution which would be payable if such 
     individual were an employee enrolled in the same health 
     benefits plan and level of benefits.
       (6) The cancellation by a eligible individual of coverage 
     under the Federal Employee Health Benefits program shall be 
     irrevocable during the term of the demonstration project 
     under this subsection.
       (e) TRICARE as Supplement to Medicare Demonstration.--(1) 
     Under one of the demonstration projects under this section, 
     the Secretary shall permit eligible individuals described in 
     subsection (b) who reside in each area of the demonstration 
     project selected under subsection (c) to enroll in the 
     TRICARE program. The demonstration project under this 
     subsection shall be known as the ``TRICARE Senior 
     Supplement''.
       (2) Payment for care and services received by eligible 
     individuals who enroll in the TRICARE program under the 
     demonstration project shall be made as follows:
       (A) First, under title XVIII of the Social Security Act, 
     but only the extent that payment for such care and services 
     is provided for under that title.
       (B) Second, under the TRICARE program, but only to the 
     extent that payment for such care and services is provided 
     under that program and is not provided for under subparagraph 
     (A).
       (C) Third, by the eligible individual concerned, but only 
     to the extent that payment for such care and services is not 
     provided for under subparagraphs (B) and (C).
       (3)(A) The Secretary shall require each eligible individual 
     who enrolls in the TRICARE program under the demonstration 
     project to pay an enrollment fee. The Secretary may provide 
     for payment of the enrollment fee on a periodic basis.
       (B) The amount of the enrollment fee of an eligible 
     individual under subparagraph (A) in any year may not exceed 
     an amount equal to 75 percent of the total subscription 
     charges in that year for self-only or family, fee-for-service 
     coverage under the health benefits plan under the Federal 
     Employees Health Benefits program under chapter 89 of title 
     5, United States Code, that is most similar in coverage to 
     the TRICARE program.
       (f) TRICARE Mail Order Pharmacy Benefit Supplement to 
     Medicare Demonstration.--(1) Under one of the demonstration 
     projects under this section, the Secretary shall permit 
     eligible individuals described in subsection (b) who reside 
     in each area of the demonstration project selected under 
     subsection (c) to participate in the mail order pharmacy 
     benefit available under the TRICARE program.
       (2) The Secretary may collect from eligible individuals who 
     participate in the mail order pharmacy benefit under the 
     demonstration project any premiums, deductibles, copayments, 
     or other charges that the Secretary would otherwise collect 
     from individuals similar to such eligible individuals for 
     participation in the benefit.
       (g) Independent Evaluation.--(1) The Secretary shall 
     provide for an evaluation of the demonstration projects 
     conducted under this section by an appropriate person or 
     entity that is independent of the Department of Defense.
       (2) The evaluation shall include the following:
       (A) An analysis of the costs of each demonstration project 
     to the United States and to the eligible individuals who 
     enroll or participate in such demonstration project.
       (B) An assessment of the extent to which each demonstration 
     project satisfied the requirements of such eligible 
     individuals for the health care services available under such 
     demonstration project.
       (C) An assessment of the effect, if any, of each 
     demonstration project on military medical readiness.
       (D) A description of the rate of the enrollment or 
     participation in each demonstration project of the 
     individuals who were eligible to enroll or participate in 
     such demonstration project.
       (E) An assessment of which demonstration project provides 
     the most suitable model for a program to provide adequate 
     health care services to the population of individuals 
     consisting of the eligible individuals.
       (F) An evaluation of any other matters that the Secretary 
     considers appropriate.
       (3) The Comptroller General shall review the evaluation 
     conducted under paragraph (1). In carrying out the review, 
     the Comptroller General shall--
       (A) assess the validity of the processes used in the 
     evaluation; and
       (B) assess the validity of any findings under the 
     evaluation.
       (4)(A) The Secretary shall submit a report on the results 
     of the evaluation under paragraph (1), together with the 
     evaluation, to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives not later than December 31, 2003.
       (B) The Comptroller General shall submit a report on the 
     results of the review under paragraph (3) to the committees 
     referred to in subparagraph (A) not later than February 15, 
     2004.
       (h) Additional Requirements Relating to FEHBP Demonstration 
     Project.--(1) Notwithstanding subsection (a)(2), the 
     Secretary shall commence the demonstration project under 
     subsection (d) on July 1, 1999.
       (2) Notwithstanding subsection (c), the Secretary shall 
     carry out the demonstration project under subsection (d) in 
     four separate areas, of which--
       (A) two shall meet the requirements of subsection 
     (c)(1)(A); and
       (B) two others shall meet the requirements of subsection 
     (c)(1)(B).
       (3)(A) Notwithstanding subsection (f), the Secretary shall 
     provide for an annual evaluation of the demonstration project 
     under subsection (d) that meets the requirements of 
     subsection (f)(2).
       (B) The Comptroller shall review each evaluation provided 
     for under subparagraph (A).
       (C) Not later than September 15 in each of 2000 through 
     2004, the Secretary shall submit a report on the results of 
     the evaluation under subparagraph (A) during such year, 
     together with the evaluation, to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives.
       (D) Not later than December 31 in each of 2000 through 
     2004, the Comptroller General shall submit a report on the 
     results of the review under subparagraph (B) during such year 
     to the committees referred to in subparagraph (C).
       (i) Definitions.--In this section:
       (1) The term ``administering Secretaries'' has the meaning 
     given that term in section 1072(3) of title 10, United States 
     Code.
       (2) The term ``TRICARE program'' has the meaning given that 
     term in section 1072(7) of title 10, United States Code.
       (j) Competition for Services.--The program under this 
     section will allow retail to compete for services in delivery 
     of pharmacy benefits without increasing costs to the 
     Government or the beneficiaries.

     SEC. 708. PROFESSIONAL QUALIFICATIONS OF PHYSICIANS PROVIDING 
                   MILITARY HEALTH CARE.

       (a) Requirement for Unrestricted License.--Section 
     1094(a)(1) of title 10, United States Code, is amended by 
     adding at the end the following: ``In the case of a 
     physician, the physician may not provide health care as a 
     physician under this chapter unless the current license is an 
     unrestricted license that is not subject to limitation on the 
     scope of practice ordinarily granted to other physicians for 
     a similar specialty by the jurisdiction that granted the 
     license.''.
       (b) Satisfaction of Continuing Medical Education 
     Requirements.--(1) Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1094 the 
     following new section:

     ``Sec. 1094a. Continuing medical education requirements: 
       system for monitoring physician compliance

       ``The Secretary of Defense shall establish a mechanism for 
     ensuring that each person under the jurisdiction of the 
     Secretary of a military department who provides health care 
     under this chapter as a physician satisfies the continuing 
     medical education requirements applicable to the 
     physician.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1094a. Continuing medical education requirements: system for 
              monitoring physician compliance.''.
       (c) Effective Dates.--(1) The amendment made by subsection 
     (a) shall take effect on October 1, 1998.
       (2) The system required by section 1094a of title 10, 
     United States Code (as added by subsection (b)), shall take 
     effect on the date that is three years after the date of the 
     enactment of this Act.

     SEC. 709. ASSESSMENT OF ESTABLISHMENT OF INDEPENDENT ENTITY 
                   TO EVALUATE POST-CONFLICT ILLNESSES AMONG 
                   MEMBERS OF THE ARMED FORCES AND HEALTH CARE 
                   PROVIDED BY THE DEPARTMENT OF DEFENSE AND 
                   DEPARTMENT OF VETERANS AFFAIRS BEFORE AND AFTER 
                   DEPLOYMENT OF SUCH MEMBERS.

       (a) Agreement for Assessment.--The Secretary of Defense 
     shall seek to enter into an agreement with the National 
     Academy of Sciences, or other appropriate independent 
     organization, under which agreement the Academy shall carry 
     out the assessment referred to in subsection (b).
       (b) Assessment.--(1) Under the agreement, the Academy shall 
     assess the need for and feasibility of establishing an 
     independent entity to--
       (A) evaluate and monitor interagency coordination on issues 
     relating to the post-deployment health concerns of members of 
     the Armed Forces, including coordination relating to outreach 
     and risk communication,

[[Page S7492]]

     recordkeeping, research, utilization of new technologies, 
     international cooperation and research, health surveillance, 
     and other health-related activities;
       (B) evaluate the health care (including preventive care and 
     responsive care) provided to members of the Armed Forces both 
     before and after their deployment on military operations;
       (C) monitor and direct government efforts to evaluate the 
     health of members of the Armed Forces upon their return from 
     deployment on military operations for purposes of ensuring 
     the rapid identification of any trends in diseases or 
     injuries among such members as a result of such operations;
       (D) provide and direct the provision of ongoing training of 
     health care personnel of the Department of Defense and the 
     Department of Veterans Affairs in the evaluation and 
     treatment of post-deployment diseases and health conditions, 
     including nonspecific and unexplained illnesses; and
       (E) make recommendations to the Department of Defense and 
     the Department of Veterans Affairs regarding improvements in 
     the provision of health care referred to in subparagraph (B), 
     including improvements in the monitoring and treatment of 
     members referred to in that subparagraph.
       (2) The assessment shall cover the health care provided by 
     the Department of Defense and, where applicable, by the 
     Department of Veterans Affairs.
       (c) Report.--(1) The agreement shall require the Academy to 
     submit to the committees referred to in paragraph (3) a 
     report on the results of the assessment under this section 
     not later than one year after the date of enactment of this 
     Act.
       (2) The report shall include the following:
       (A) The recommendation of the Academy as to the need for 
     and feasibility of establishing an independent entity as 
     described in subsection (b) and a justification of such 
     recommendation.
       (B) If the Academy recommends that an entity be 
     established, the recommendations of the Academy as to--
       (i) the organizational placement of the entity;
       (ii) the personnel and other resources to be allocated to 
     the entity;
       (iii) the scope and nature of the activities and 
     responsibilities of the entity; and
       (iv) mechanisms for ensuring that any recommendations of 
     the entity are carried out by the Department of Defense and 
     the Department of Veterans Affairs.
       (3) The report shall be submitted to the following:
       (A) The Committee on Armed Services and the Committee on 
     Veterans' Affairs of the Senate.
       (B) The Committee on National Security and the Committee on 
     Veterans' Affairs of the House of Representatives.

     SEC. 710. LYME DISEASE.

       Of the amounts authorized to be appropriated by this Act 
     for Defense Health Programs, $3,000,000 shall be available 
     for research and surveillance activities relating to Lyme 
     disease and other tick-borne diseases.

     SEC. 711. ACCESSIBILITY TO CARE UNDER TRICARE.

       (a) Rehabilitative Services for Head Injuries.--The 
     Secretary of Defense shall revise the TRICARE policy manual 
     to clarify that rehabilitative services are available to a 
     patient for a head injury when the treating physician 
     certifies that such services would be beneficial for the 
     patient and there is potential for the patient to recover 
     from the injury.
       (b) Review of Adequacy of Provider Network.--The Secretary 
     of Defense shall review the administration of the TRICARE 
     Prime health plans to determine whether, for the region 
     covered by each such plan, there is a sufficient number, 
     distribution, and variety of qualified participating health 
     care providers to ensure that all covered health care 
     services, including specialty services, are available and 
     accessible in a timely manner to all persons covered by the 
     plan. If the Secretary determines during the review that, in 
     the region, there is an inadequate network of providers to 
     provide the covered benefits in proximity to the permanent 
     duty stations of covered members of the uniformed services in 
     the region, or in proximity to the residences of other 
     persons covered by the plan in the region, the Secretary 
     shall take such actions as are necessary to ensure that the 
     TRICARE Prime plan network of providers in the region is 
     adequate to provide for all covered benefits to be available 
     and accessible in a timely manner to all persons covered by 
     the plan.

     SEC. 712. HEALTH BENEFITS FOR ABUSED DEPENDENTS OF MEMBERS OF 
                   THE ARMED FORCES.

       Paragraph (1) of section 1076(e) of title 10, United States 
     Code, is amended to read as follows:
       ``(1) The administering Secretary shall furnish an abused 
     dependent of a former member of a uniformed service described 
     in paragraph (4), during that period that the abused 
     dependent is in receipt of transitional compensation under 
     section 1059 of this title, with medical and dental care, 
     including mental health services, in facilities of the 
     uniformed services in accordance with the same eligibility 
     and benefits as were applicable for that abused dependent 
     during the period of active service of the former member.''.

     SEC. 713. PROCESS FOR WAIVING INFORMED CONSENT REQUIREMENT 
                   FOR ADMINISTRATION OF CERTAIN DRUGS TO MEMBERS 
                   OF ARMED FORCES.

       (a) Limitation and Waiver.--(1) Section 1107 of title 10, 
     United States Code, is amended--
       (A) by redesignating subsection (f) as subsection (g); and
       (B) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Limitation and Waiver.--(1) An investigational new 
     drug or a drug unapproved for its applied use may not be 
     administered to a member of the armed forces pursuant to a 
     request or requirement referred to in subsection (a) unless--
       ``(A) the member provides prior consent to receive the drug 
     in accordance with the requirements imposed under the 
     regulations required under paragraph (4) of section 505(i) of 
     the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)); 
     or
       ``(B) the Secretary obtains--
       ``(i) under such section a waiver of such requirements; and
       ``(ii) a written statement that the President concurs in 
     the determination of the Secretary required under paragraph 
     (2) and with the Secretary's request for the waiver.
       ``(2) The Secretary of Defense may request a waiver 
     referred to in paragraph (1)(B) in the case of any request or 
     requirement to administer a drug under this section if the 
     Secretary determines that obtaining consent is not feasible, 
     is contrary to the best interests of the members involved, or 
     is not in the best interests of national security. Only the 
     Secretary may exercise the authority to make the request for 
     the Department of Defense, and the Secretary may not delegate 
     that authority.
       ``(3) The Secretary shall submit to the chairman and 
     ranking minority member of each congressional defense 
     committee a notification of each waiver granted pursuant to a 
     request of the Secretary under paragraph (2), together with 
     the concurrence of the President under paragraph (1)(B) that 
     relates to the waiver and the justification for the request 
     or requirement under subsection (a) for a member to receive 
     the drug covered by the waiver.
       ``(4) In this subsection, the term `congressional defense 
     committee' means each of the following:
       ``(A) The Committee on Armed Services and the Committee on 
     Appropriations of the Senate.
       ``(B) The Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (2) The requirements for a concurrence of the President and 
     a notification of committees of Congress that are set forth 
     in section 1107(f) of title 10, United States Code (as added 
     by paragraph (1)(B)) shall apply with respect to--
       (A) each waiver of the requirement for prior consent 
     imposed under the regulations required under paragraph (4) of 
     section 505(i) of the Federal Food, Drug, and Cosmetic Act 
     (or under any antecedent provision of law or regulations) 
     that--
       (i) has been granted under that section (or antecedent 
     provision of law or regulations) before the date of the 
     enactment of this Act; and
       (ii) is applied after that date; and
       (B) each waiver of such requirement that is granted on or 
     after that date.
       (b) Time and Form of Notice.--(1) Subsection (b) of such 
     section is amended by striking out ``, if practicable'' and 
     all that follows through ``first administered to the 
     member''.
       (2) Subsection (c) of such section is amended by striking 
     out ``unless the Secretary of Defense determines'' and all 
     that follows through ``alternative method''.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

     SEC. 801. PARA-ARAMID FIBERS AND YARNS.

       (a) Authorized Sources.--Chapter 141 of title 10, United 
     States Code is amended by adding at the end the following:

     ``Sec. 2410n. Foreign manufactured para-aramid fibers and 
       yarns: procurement

       ``(a) Authority.--The Secretary of Defense may procure 
     articles containing para-aramid fibers and yarns manufactured 
     in a foreign country referred to in subsection (b).
       ``(b) Foreign Countries Covered.--The authority under 
     subsection (a) applies with respect to a foreign country 
     that--
       ``(1) is a party to a defense memorandum of understanding 
     entered into under section 2531 of this title; and
       ``(2) permits United States firms that manufacture para-
     aramid fibers and yarns to compete with foreign firms for the 
     sale of para-aramid fibers and yarns in that country, as 
     determined by the Secretary of Defense.
       ``(c) Applicability to Subcontracts.--The authority under 
     subsection (a) applies with respect to subcontracts under 
     Department of Defense contracts as well as to such contracts.
       ``(d) Definitions.--In this section, the terms `United 
     States firm' and `foreign firm' have the meanings given such 
     terms in section 2532(d) of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``2410n. Foreign manufactured para-aramid fibers and yarns: 
              procurement.''.

     SEC. 802. PROCUREMENT OF TRAVEL SERVICES FOR OFFICIAL AND 
                   UNOFFICIAL TRAVEL UNDER ONE CONTRACT.

       (a) Authority.--Chapter 147 of title 10, United States 
     Code, is amended by inserting after section 2490a the 
     following new section:

[[Page S7493]]

     ``Sec. 2490b. Travel services: procurement for official and 
       unofficial travel under one contract

       ``(a) Authority.--The head of an agency may enter into a 
     contract for travel-related services that provides for the 
     contractor to furnish services for both official travel and 
     unofficial travel.
       ``(b) Credits, Discounts, Commissions, Fees.--(1) A 
     contract entered into under this section may provide for 
     credits, discounts, or commissions or other fees to accrue to 
     the Department of Defense. The accrual and amounts of 
     credits, discounts, or commissions or other fees may be 
     determined on the basis of the volume (measured in the number 
     or total amount of transactions or otherwise) of the travel-
     related sales that are made by the contractor under the 
     contract.
       ``(2) The evaluation factors applicable to offers for a 
     contract under this section may include a factor that relates 
     to the estimated aggregate value of any credits, discounts, 
     commissions, or other fees that would accrue to the 
     Department of Defense for the travel-related sales made under 
     the contract.
       ``(3) Commissions or fees received by the Department of 
     Defense as a result of travel-related sales made under a 
     contract entered into under this section shall be distributed 
     as follows:
       ``(A) For amounts relating to sales for official travel, 
     credit to appropriations available for official travel for 
     the fiscal year in which the amounts were charged.
       ``(B) For amounts relating to sales for unofficial travel, 
     deposit in nonappropriated fund accounts available for 
     morale, welfare, and recreation programs.
       ``(c) Definitions.--In this section:
       ``(1) The term `head of an agency' has the meaning given 
     that term in section 2302(1) of this title.
       ``(2) The term `official travel' means travel at the 
     expense of the Federal Government.
       ``(3) The term `unofficial travel' means personal travel or 
     other travel that is not paid for or reimbursed by the 
     Federal Government out of appropriated funds.
       ``(d) Inapplicability to Coast Guard and NASA.--This 
     section does not apply to the Coast Guard when it is not 
     operating as a service in the Navy, nor to the National 
     Aeronautics and Space Administration.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``2490b. Travel services: procurement for official and unofficial 
              travel under one contract.''.

     SEC. 803. LIMITATION ON USE OF PRICE PREFERENCE UPON 
                   ATTAINMENT OF CONTRACT GOAL FOR SMALL AND 
                   DISADVANTAGED BUSINESSES.

       Section 2323(e)(3) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(A)'' after ``(3)'';
       (2) by inserting ``, except as provided in (B),'' after 
     ``the head of an agency may'' in the first sentence; and
       (3) by adding at the end the following:
       ``(B) The head of an agency may not exercise the authority 
     under subparagraph (A) to enter into a contract for a price 
     exceeding fair market cost in the fiscal year following a 
     fiscal year in which the Department of Defense attained the 5 
     percent goal required by subsection (a).''.

     SEC. 804. DISTRIBUTION OF ASSISTANCE UNDER THE PROCUREMENT 
                   TECHNICAL ASSISTANCE COOPERATIVE AGREEMENT 
                   PROGRAM.

       (a) Correction of Description of Geographic Unit.--Section 
     2413(c) of title 10, United States Code, is amended by 
     striking out ``region'' and inserting in lieu thereof 
     ``district''.
       (b) Allocation of Funds.--(1) Section 2415 of title 10, 
     United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 142 
     of such title is amended by striking the item relating to 
     section 2415.

     SEC. 805. DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

       (a) Short Title.--This section may be cited as the 
     ``Defense Commercial Pricing Management Improvement Act of 
     1998''.
       (b) Commercial Items Exempt From Cost or Pricing Data 
     Certification Requirements.--For the purposes of this 
     section, the term ``exempt item'' means a commercial item 
     that is exempt under subsection (b)(1)(B) of section 2306a of 
     title 10, United States Code, or subsection (b)(1)(B) of 
     section 304A of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 254b), from the requirements 
     for submission of certified cost or pricing data under that 
     section.
       (c) Commercial Pricing Regulations.--(1) The Federal 
     Acquisition Regulation issued in accordance with sections 6 
     and 25 of the Office of Federal Procurement Policy Act shall 
     be revised to clarify the procedures and methods to be used 
     for determining the reasonableness of prices of exempt items.
       (2) The regulations shall, at a minimum, provide specific 
     guidance on--
       (A) the appropriate application and precedence of such 
     price analysis tools as catalog-based pricing, market-based 
     pricing, historical pricing, parametric pricing, and value 
     analysis;
       (B) the circumstances under which contracting officers 
     should require offerors of exempt items to provide--
       (i) uncertified cost or pricing data; or
       (ii) information on prices at which the offeror has 
     previously sold the same or similar items;
       (C) the role and responsibility of Department of Defense 
     support organizations, such as the Defense Contract Audit 
     Agency, in procedures for determining price reasonableness; 
     and
       (D) the meaning and appropriate application of the term 
     ``purposes other than governmental purposes'' in section 
     4(12) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 403(12)).
       (3) This subsection shall cease to be effective one year 
     after the date on which final regulations prescribed pursuant 
     to paragraph (1) take effect.
       (d) Unified Management of Procurement of Exempt Commercial 
     Items.--The Secretary of Defense shall develop and implement 
     procedures to ensure that, to the maximum extent that is 
     practicable and consistent with the efficient operation of 
     the Department of Defense, a single item manager or 
     contracting officer is responsible for negotiating and 
     entering into all contracts for the procurement of exempt 
     items from a single contractor.
       (e) Commercial Price Trend Analysis.--(1) The Secretary of 
     Defense shall develop and implement procedures that, to the 
     maximum extent that is practicable and consistent with the 
     efficient operation of the Department of Defense, provide for 
     the collection and analysis of information on price trends 
     for categories of exempt items described in paragraph (2).
       (2) A category of exempt items referred to in paragraph (1) 
     consists of exempt items--
       (A) that are in a single Federal Supply Group or Federal 
     Supply Class, are provided by a single contractor, or are 
     otherwise logically grouped for the purpose of analyzing 
     information on price trends; and
       (B) for which there is a potential for the price paid to be 
     significantly higher (on a percentage basis) than the prices 
     previously paid in procurements of the same or similar items 
     for the Department of Defense, as determined by the head of 
     the procuring Department of Defense agency or the Secretary 
     of the procuring military department on the basis of criteria 
     prescribed by the Secretary of Defense.
       (3) The head of a Department of Defense agency or the 
     Secretary of a military department shall take appropriate 
     action to address any unreasonable escalation in prices being 
     paid for items procured by that agency or military department 
     as identified in an analysis conducted pursuant to paragraph 
     (1).
       (4)(A) Not later than 180 days after the date of the 
     enactment of this Act, the Under Secretary of Defense for 
     Acquisition and Technology shall submit to the congressional 
     defense committees a report describing the procedures 
     prescribed under paragraph (1), including a description of 
     the criteria established for the selection of categories of 
     exempt items for price trend analysis.
       (B) Not later than April 1 of each of fiscal years 2000, 
     2001, and 2002, the Under Secretary of Defense for 
     Acquisition and Technology shall submit to the congressional 
     defense committees a report on the analyses of price trends 
     that were conducted for categories of exempt items during the 
     preceding fiscal year under the procedures prescribed 
     pursuant to paragraph (1). The report shall include a 
     description of the actions taken to identify and address any 
     unreasonable price escalation for the categories of items.
       (f) Secretary of Defense To Act Through Under Secretary of 
     Defense for Acquisition and Technology.--The Secretary of 
     Defense shall act through the Under Secretary of Defense for 
     Acquisition and Technology to carry out subsections (d) and 
     (e).

     SEC. 806. DEPARTMENT OF DEFENSE PURCHASES THROUGH OTHER 
                   AGENCIES.

       (a) Extension of Regulations.--Not later than three months 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall revise the regulations issued pursuant to 
     section 844 of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1720; 31 
     U.S.C. 1535 note) to cover all purchases of goods and 
     services by the Department of Defense under contracts entered 
     into or administered by any other agency pursuant to the 
     authority of section 2304a of title 10, United States Code, 
     or section 303H of the Federal Property and Administrative 
     Services Act (41 U.S.C. 253h).
       (b) Termination.--This section shall cease to be effective 
     1 year after the date on which final regulations prescribed 
     pursuant to subsection (a) take effect.

     SEC. 807. SUPERVISION OF DEFENSE ACQUISITION UNIVERSITY 
                   STRUCTURE BY UNDER SECRETARY OF DEFENSE FOR 
                   ACQUISITION AND TECHNOLOGY.

       Section 1702 of title 10, United States Code, is amended by 
     adding at the end the following: ``The Under Secretary shall 
     prescribe policies and requirements for the educational 
     programs of the defense acquisition university structure 
     established under section 1746 of this title.''.

     SEC. 808. REPEAL OF REQUIREMENT FOR DIRECTOR OF ACQUISITION 
                   EDUCATION, TRAINING, AND CAREER DEVELOPMENT TO 
                   BE WITHIN THE OFFICE OF THE UNDER SECRETARY OF 
                   DEFENSE FOR ACQUISITION AND TECHNOLOGY.

       Section 1703 of title 10, United States Code, is amended by 
     striking out ``within the office of the Under Secretary''.

[[Page S7494]]

     SEC. 809. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED EMPLOYEE 
                   FOR MEMBERSHIP IN AN ACQUISITION CORPS.

       Section 1732(c) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(3) Paragraph (1) of subsection (b) shall not apply to an 
     employee who--
       ``(A) having previously served in a position within a grade 
     referred to in subparagraph (A) of that paragraph, is 
     currently serving in the same position within a grade below 
     GS-13, or in another position within that grade, by reason of 
     a reduction in force or the closure or realignment of a 
     military installation, or for any other reason other by 
     reason of an adverse personnel action for cause; and
       ``(B) except as provided in paragraphs (1) and (2), 
     satisfies the educational, experience, and other requirements 
     prescribed under paragraphs (2), (3), and (4) of that 
     subsection.''.

     SEC. 810. PILOT PROGRAMS FOR TESTING PROGRAM MANAGER 
                   PERFORMANCE OF PRODUCT SUPPORT OVERSIGHT 
                   RESPONSIBILITIES FOR LIFE CYCLE OF ACQUISITION 
                   PROGRAMS.

       (a) Designation of Pilot Programs.--The Secretary of 
     Defense, acting through the Secretaries of the military 
     departments, shall designate 10 acquisition programs of the 
     military departments as pilot programs on program manager 
     responsibility for product support.
       (b) Responsibilities of Program Managers.--The program 
     manager for each acquisition program designated as a pilot 
     program under this section shall have the responsibility for 
     ensuring that the product support functions for the program 
     are properly carried out over the entire life cycle of the 
     program.
       (c) Report.--Not later than February 1, 1999, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report on the pilot programs. The report shall 
     contain the following:
       (1) A description of the acquisition programs designated as 
     pilot programs under subsection (a).
       (2) For each such acquisition program, the specific 
     management actions taken to ensure that the program manager 
     has the responsibility for oversight of the performance of 
     the product support functions.
       (3) Any proposed change to law, policy, regulation, or 
     organization that the Secretary considers desirable, and 
     determines feasible to implement, for ensuring that the 
     program managers are fully responsible under the pilot 
     programs for the performance of all such responsibilities.

     SEC. 811. SCOPE OF PROTECTION OF CERTAIN INFORMATION FROM 
                   DISCLOSURE.

       Section 2371(i)(2)(A) of title 10, United States Code, is 
     amended by striking out ``cooperative agreement that includes 
     a clause described in subsection (d)'' and inserting in lieu 
     thereof ``cooperative agreement for performance of basic, 
     applied, or advanced research authorized by section 2358 of 
     this title''.

     SEC. 812. PLAN FOR RAPID TRANSITION FROM COMPLETION OF SMALL 
                   BUSINESS INNOVATION RESEARCH INTO DEFENSE 
                   ACQUISITION PROGRAMS.

       (a) Plan Required.--Not later than February 1, 1999, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a plan for facilitating the 
     rapid transition into Department of Defense acquisition 
     programs of successful first phase and second phase 
     activities under the Small Business Innovation Research 
     program under section 9 of the Small Business Act (15 U.S.C. 
     638).
       (b) Conditions.--The plan submitted under subsection (a) 
     shall--
       (1) be consistent with the Small Business Innovation 
     Research program and with recent acquisition reforms that are 
     applicable to the Department of Defense; and
       (2) provide--
       (A) a high priority for funding the projects under the 
     Small Business Innovation Research program that are likely to 
     be successful under a third phase agreement entered into 
     pursuant to section 9(r) of the Small Business Act (15 U.S.C. 
     638(r)); and
       (B) for favorable consideration, in the acquisition 
     planning process, for funding projects under the Small 
     Business Innovation Research program that are subject to a 
     third phase agreement described in subparagraph (A).

     SEC. 813. SENIOR EXECUTIVES COVERED BY LIMITATION ON 
                   ALLOWABILITY OF COMPENSATION FOR CERTAIN 
                   CONTRACTOR PERSONNEL.

       (a) Defense Contracts.--Section 2324(l)(5) of title 10, 
     United States Code, is amended to read as follows:
       ``(5) The term `senior executive', with respect to a 
     contractor, means the five most highly compensated employees 
     in management positions at each home office and segment of 
     the contractor.''.
       (b) Non-Defense Contracts.--Section 306(m)(2) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 256(m)(2)) is amended to read as follows:
       ``(2) The term `senior executive', with respect to a 
     contractor, means the five most highly compensated employees 
     in management positions at each home office and segment of 
     the contractor.''.
       (c) Conforming Amendment.--Section 39(c)(2) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 435(c)(2)) is 
     amended to read as follows:
       ``(2) The term `senior executive', with respect to a 
     contractor, means the five most highly compensated employees 
     in management positions at each home office and segment of 
     the contractor.''.

     SEC. 814. SEPARATE DETERMINATIONS OF EXCEPTIONAL WAIVERS OF 
                   TRUTH IN NEGOTIATION REQUIREMENTS FOR PRIME 
                   CONTRACTS AND SUBCONTRACTS.

       (a) Defense Procurements.--Section 2306a(a)(5) of title 10, 
     United States Code, is amended to read as follows:
       ``(5) A waiver of requirements for submission of certified 
     cost or pricing data that is granted under subsection 
     (b)(1)(C) in the case of a contract or subcontract does not 
     waive the requirement under paragraph (1)(C) for submission 
     of cost or pricing data in the case of subcontracts under 
     that contract or subcontract unless the head of the agency 
     concerned determines that the requirement under that 
     paragraph should be waived in the case of such subcontracts 
     and justifies in writing the reasons for the 
     determination.''.
       (b) Non-Defense Procurements.--Section 304A(a)(5) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 254b(a)(5)) is amended to read as follows:
       ``(5) A waiver of requirements for submission of certified 
     cost or pricing data that is granted under subsection 
     (b)(1)(C) in the case of a contract or subcontract does not 
     waive the requirement under paragraph (1)(C) for submission 
     of cost or pricing data in the case of subcontracts under 
     that contract or subcontract unless the head of the executive 
     agency concerned determines that the requirement under that 
     paragraph should be waived in the case of such subcontracts 
     and justifies in writing the reasons for the 
     determination.''.

     SEC. 815. FIVE-YEAR AUTHORITY FOR SECRETARY OF THE NAVY TO 
                   EXCHANGE CERTAIN ITEMS.

       (a) Barter Authority.--The Secretary of the Navy may enter 
     into a barter agreement to exchange trucks and other tactical 
     vehicles for the repair and remanufacture of ribbon bridges 
     for the Marine Corps in accordance with section 201(c) of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 481(c)), except that the requirement for items 
     exchanged under that section to be similar items shall not 
     apply to the authority under this subsection.
       (b) Period of Authority.--The authority to enter into 
     agreements under subsection (a) and to make exchanges under 
     any such agreement is effective during the 5-year period 
     beginning on October 1, 1998, and ending at the end of 
     September 30, 2003.

     SEC. 816. CLARIFICATION OF RESPONSIBILITY FOR SUBMISSION OF 
                   INFORMATION ON PRICES PREVIOUSLY CHARGED FOR 
                   PROPERTY OR SERVICES OFFERED.

       (a) Armed Services Procurements.--Section 2306a(d)(1) of 
     title 10, United States Code is amended--
       (1) by striking out ``the data submitted shall'' in the 
     second sentence and inserting in lieu thereof the following: 
     ``the contracting officer shall require that the data 
     submitted''; and
       (2) by adding at the end the following: ``Submission of 
     data required of an offeror under the preceding sentence in 
     the case of a contract or subcontract shall be a condition 
     for the eligibility of the offeror to enter into the contract 
     or subcontract.''.
       (b) Civilian Agency Procurements.--Section 304A(d)(1) of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 254b(d)(1)), is amended--
       (1) by striking out ``the data submitted shall'' in the 
     second sentence and inserting in lieu thereof the following: 
     ``the contracting officer shall require that the data 
     submitted''; and
       (2) by adding at the end the following: ``Submission of 
     data required of an offeror under the preceding sentence in 
     the case of a contract or subcontract shall be a condition 
     for the eligibility of the offeror to enter into the contract 
     or subcontract.''.
       (c) Criteria for Certain Determinations.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Federal Acquisition Regulation shall be amended to include 
     criteria for contracting officers to apply for determining 
     the specific price information that an offeror should be 
     required to submit under section 2306(d) of title 10, United 
     States Code, or section 304A(d) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 254b(d)).

     SEC. 817. DENIAL OF QUALIFICATION OF A SMALL DISADVANTAGED 
                   BUSINESS SUPPLIER.

       (a) No later than December 1, 1998, the Secretary shall 
     submit to the Congress a report recommending alternative 
     means through which a refiner that qualifies as a small 
     disadvantaged business and that delivers fuel by barge to 
     Defense Energy Supply Point-Anchorage under a contract with 
     the Defense Energy Supply Center can--
       (1) fulfill its contractual obligations,
       (2) maintain its status as a small disadvantaged business, 
     and
       (3) receive the small disadvantaged business premium for 
     the total amount of fuel under the contract,
     when ice conditions in Cook Inlet threaten physical delivery 
     of such fuel.
       (b) Any inability by such refiner to satisfy its 
     contractual obligations to the Defense Energy Supply Center 
     for the delivery of fuel to Defense Energy Supply Point-
     Anchorage

[[Page S7495]]

     may not be used as a basis for the denial of such refiner's 
     small disadvantaged business status or small disadvantaged 
     business premium for the total amount of fuel under the 
     contract, where such inability is a result of ice conditions, 
     as determined by the United States Coast Guard, in Cook Inlet 
     through February 1999, and if the Secretary of Defense 
     determines that such inability will result in an inequity to 
     the refiner.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

     SEC. 901. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF 
                   DEFENSE POSITIONS.

       (a) Nine Positions.--Section 138(a) of title 10, United 
     States Code, is amended by striking out ``ten'' and insert in 
     lieu thereof ``nine''.
       (b) Conforming Amendment.--The item relating to the 
     Assistant Secretaries of Defense in section 5315 of title 5, 
     United States Code, is amended to read as follows:
       ``Assistant Secretaries of Defense (9).''.

     SEC. 902. RENAMING OF POSITION OF ASSISTANT SECRETARY OF 
                   DEFENSE FOR COMMAND, CONTROL, COMMUNICATIONS, 
                   AND INTELLIGENCE.

       Section 138(b)(3) of title 10, United States Code is 
     amended to read as follows:
       ``(3) One of the Assistant Secretaries shall be the 
     Assistant Secretary of Defense for Space and Information 
     Superiority. The Assistant Secretary--
       ``(A) shall have as his principal duty the overall 
     supervision of the functions of the Department of Defense 
     that relate to space, intelligence, information security, 
     information operations, command, control, communications, 
     computers, surveillance, reconnaissance, and electromagnetic 
     spectrum; and
       ``(B) shall be the Chief Information Officer of the 
     Department of Defense.''.

     SEC. 903. AUTHORITY TO EXPAND THE NATIONAL DEFENSE 
                   UNIVERSITY.

       Section 2165(b) of title 10, United States Code, is amended 
     by adding at the end the following:
       ``(7) Any other educational institution of the Department 
     of Defense that the Secretary considers appropriate and 
     designates as an institution of the university.''.

     SEC. 904. REDUCTION IN DEPARTMENT OF DEFENSE HEADQUARTERS 
                   STAFF.

       (a) Reduction Required.--(1) The Secretary of Defense shall 
     reduce the number of Federal Government employees and members 
     of the Armed Forces on the headquarters staffs of Department 
     of Defense organizations in accordance with this section. The 
     Secretary shall achieve the required reductions not later 
     than September 30, 2003.
       (2) The total number of Federal Government employees and 
     members of the Armed Forces on the headquarters staffs of all 
     organizations within a category of organizations described in 
     paragraph (4) shall be reduced below the baseline number for 
     the category by the percentage specified for the category in 
     that paragraph. In the administration of this section, the 
     number of employees employed on a basis other than a full 
     time basis shall be converted to, and expressed as, the 
     equivalent number of full time employees.
       (3) For the purposes of this subsection, the baseline 
     number for the organizations in a category is the total 
     number of Federal Government employees and members of the 
     Armed Forces on the headquarters staffs of those 
     organizations on October 1, 1996.
       (4) The categories of organizations, and the percentages 
     applicable under paragraph (1) to the organizations in such 
     categories, are as follows:
       (A) The Office of the Secretary of Defense and associated 
     activities, a reduction of 33 percent.
       (B) Defense agencies, a reduction of 21 percent.
       (C) Department of Defense field activities and other 
     operating organizations reporting to the Office of the 
     Secretary of Defense, a reduction of 36 percent.
       (D) The Joint Staff and associated activities, a reduction 
     of 29 percent.
       (E) The headquarters of the combatant commands and 
     associated activities, a reduction of 7 percent.
       (F) Other headquarters elements (including the headquarters 
     of the military departments and their major commands) and 
     associated activities, a reduction of 29 percent.
       (b) Limited Relief From Prohibition on Managing by End-
     Strength.--(1) The Secretary may waive the requirements and 
     restrictions of section 129 of title 10, United States Code, 
     for an organization or activity covered by subsection (a) to 
     the extent that the Secretary determines necessary to achieve 
     the personnel reductions required by that subsection.
       (2) Not later than 30 days after exercising the waiver 
     authority under paragraph (1) in the case of an organization 
     or activity, the Secretary shall notify the congressional 
     defense committees of the scope and duration of the waiver 
     and the reasons for granting the waiver.
       (c) Management by Budget.--(1) The Secretary shall waive 
     the requirement under subsection (a) to reduce the number of 
     personnel on the headquarters staff of an organization or 
     activity if the Secretary determines that the budget 
     authority available for the organization or activity for 
     fiscal year 2003 has been reduced below the budget authority 
     available for the organization or activity for fiscal year 
     1996 by at least the percentage equal to one-fifth of the 
     percentage specified in subsection (a)(4) for the category of 
     the organization or activity.
       (2) In this subsection, the term ``budget authority'' has 
     the meaning given that term in section 3(2)(A) of the 
     Congressional Budget Act of 1974 (2 U.S.C. 622(2)(A)).
       (d) Joint and Defense-Wide Activities.--If the Secretary 
     consolidates functions in a Department of Defense-wide or 
     joint organization or activity described in subparagraph (A), 
     (B), (C), (D), or (E) of subsection (a)(4) in order to meet 
     the requirement for reduction in the personnel of the other 
     headquarters (including the headquarters of the military 
     departments and their major commands) referred to in 
     subparagraph (F) of such subsection, the Secretary may apply 
     to that organization or activity, instead of the percentage 
     that would otherwise apply under such subsection, a lesser 
     percentage that is appropriate to reflect the increased 
     responsibilities of the organization or activity.
       (e) Report.--Not later than March 1, 1999, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report containing a plan to implement the personnel 
     reductions required by this section.
       (f) Categories Defined.--In this section:
       (1) The term ``Office of the Secretary of Defense and 
     associated activities'' means the following organizations and 
     activities:
       (A) The Office of the Secretary of Defense, as defined in 
     section 131 of title 10, United States Code.
       (B) The defense support activities that perform technical 
     and analytical support for the Office of the Secretary of 
     Defense.
       (2) The term ``defense agencies'' means the following 
     organizations and activities:
       (A) The Ballistic Missile Defense Organization.
       (B) The Defense Advanced Research Projects Agency.
       (C) The Defense Commissary Agency.
       (D) The Defense Contract Audit Agency.
       (E) The Defense Finance and Accounting Services.
       (F) The Defense Information Systems Agency.
       (G) The Defense Legal Services Agency.
       (H) The Defense Logistics Agency.
       (I) The Defense Security Assistance Agency.
       (J) The Defense Security Service.
       (K) The Defense Special Weapons Agency.
       (L) The On-Site Inspection Agency.
       (M) The Treaty Compliance and Threat Reduction Agency.
       (3) The term ``Department of Defense field activities and 
     other operating organizations reporting to the Office of the 
     Secretary of Defense'' means the following organizations and 
     activities:
       (A) The American Forces Information Service.
       (B) The TRICARE Support Office.
       (C) The Office of Economic Adjustment.
       (D) The Department of Defense Education Activity.
       (E) Washington Headquarters Services.
       (F) The Department of Defense Human Resources Activity.
       (G) The Defense Prisoner of War/Missing Personnel Office.
       (H) The Defense Medical Programs Activity.
       (I) The Defense Technology Security Administration.
       (J) The C4I Support Activity.
       (K) The Plans and Program Analysis Support Center.
       (L) The Defense Airborne Reconnaissance Office.
       (M) The Defense Acquisition University.
       (N) The Director of Military Support.
       (O) The Defense Technical Information Center.
       (P) The National Defense University.
       (4) The term ``Joint Staff and associated activities'' 
     means the following organizations and activities:
       (A) The Joint Staff referred to in section 155 of title 10, 
     United States Code.
       (B) Department of Defense activities that are controlled by 
     the Chairman of the Joint Chiefs of Staff and report directly 
     to the Joint Staff.
       (5) The term ``headquarters of the combatant commands'' 
     means the headquarters of the combatant commands, as defined 
     in section 161(c)(3) of title 10, United States Code.
       (6) The term ``other headquarters elements (including the 
     headquarters of the military departments and their major 
     commands)'' means the following organizations and activities:
       (A) The military department headquarters listed and defined 
     in Department of Defense Directive 5100.73, ``Department of 
     Defense Management Headquarters and Headquarters Support 
     Activities'', as in effect on November 12, 1996.
       (B) Other military headquarters elements defined in such 
     directive that are not otherwise covered by paragraphs (1), 
     (2), (3), (4), and (5).
       (g) Repeal of Superseded Provisions.--(1) Sections 130a and 
     194 of title 10, United States Code, are repealed.
       (2)(A) The table of sections at the beginning of chapter 3 
     of such title is amended by striking out the item relating to 
     section 130a.
       (B) The table of sections at the beginning of chapter 8 of 
     such title is amended by striking out the item relating to 
     section 194.

     SEC. 905. PERMANENT REQUIREMENT FOR QUADRENNIAL DEFENSE 
                   REVIEW.

       (a) Review Required.--Chapter 2 of title 10, United States 
     Code, is amended by inserting after section 116 the 
     following:

     ``Sec. 117. Quadrennial defense review

       ``(a) Review Required.--The Secretary of Defense, in 
     consultation with the Chairman

[[Page S7496]]

     of the Joint Chiefs of Staff, shall conduct in each year in 
     which a President is inaugurated a comprehensive examination 
     of the defense strategy, force structure, force modernization 
     plans, infrastructure, budget plan, and other elements of the 
     defense program and policies with a view toward determining 
     and expressing the defense strategy of the United States and 
     establishing a revised defense plan for the ensuing 10 years 
     and a revised defense plan for the ensuing 20 years.
       ``(b) Consideration of Reports of National Defense Panel.--
     In conducting the review, the Secretary shall take into 
     consideration the reports of the National Defense Panel 
     submitted under section 181(d) of this title.
       ``(c) Report to Congress.--The Secretary shall submit a 
     report on each review to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives not later than September 30 of the 
     year in which the review is conducted. The report shall 
     include the following:
       ``(1) The results of the review, including a comprehensive 
     discussion of the defense strategy of the United States and 
     the force structure best suited to implement that strategy.
       ``(2) The threats examined for purposes of the review and 
     the scenarios developed in the examination of such threats.
       ``(3) The assumptions used in the review, including 
     assumptions relating to the cooperation of allies and 
     mission-sharing, levels of acceptable risk, warning times, 
     and intensity and duration of conflict.
       ``(4) The effect on the force structure of preparations for 
     and participation in peace operations and military operations 
     other than war.
       ``(5) The effect on the force structure of the utilization 
     by the Armed Forces of technologies anticipated to be 
     available for the ensuing 10 years and technologies 
     anticipated to be available for the ensuing 20 years, 
     including precision guided munitions, stealth, night vision, 
     digitization, and communications, and the changes in doctrine 
     and operational concepts that would result from the 
     utilization of such technologies.
       ``(6) The manpower and sustainment policies required under 
     the defense strategy to support engagement in conflicts 
     lasting more than 120 days.
       ``(7) The anticipated roles and missions of the reserve 
     components in the defense strategy and the strength, 
     capabilities, and equipment necessary to assure that the 
     reserve components can capably discharge those roles and 
     missions.
       ``(8) The appropriate ratio of combat forces to support 
     forces (commonly referred to as the ``tooth-to-tail'' ratio) 
     under the defense strategy, including, in particular, the 
     appropriate number and size of headquarter units and Defense 
     Agencies for that purpose.
       ``(9) The air-lift and sea-lift capabilities required to 
     support the defense strategy.
       ``(10) The forward presence, pre-positioning, and other 
     anticipatory deployments necessary under the defense strategy 
     for conflict deterrence and adequate military response to 
     anticipated conflicts.
       ``(11) The extent to which resources must be shifted among 
     two or more theaters under the defense strategy in the event 
     of conflict in such theaters.
       ``(12) The advisability of revisions to the Unified Command 
     Plan as a result of the defense strategy.
       ``(13) Any other matter the Secretary considers 
     appropriate.''.
       (b) National Defense Panel.--Chapter 7 of such title is 
     amended by adding at the end the following:

     ``Sec. 181. National Defense Panel

       ``(a) Establishment.--Not later than January 1 of each year 
     immediately preceding a year in which a President is to be 
     inaugurated, the Secretary of Defense shall establish a 
     nonpartisan, independent panel to be known as the National 
     Defense Panel. The Panel shall have the duties set forth in 
     this section.
       ``(b) Membership.--The Panel shall be composed of a 
     chairman and eight other individuals appointed by the 
     Secretary, in consultation with the chairman and ranking 
     member of the Committee on Armed Services of the Senate and 
     the chairman and ranking member of the Committee on National 
     Security of the House of Representatives, from among 
     individuals in the private sector who are recognized experts 
     in matters relating to the national security of the United 
     States.
       ``(c) Duties.--The Panel shall--
       ``(1) conduct and submit to the Secretary of Defense and to 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives a comprehensive assessment of the defense 
     strategy, force structure, force modernization plans, 
     infrastructure, budget plan, and other elements of the 
     defense program and policies with a view toward recommending 
     a defense strategy of the United States and a revised defense 
     plan for the ensuing 10 years and a revised defense plan for 
     the ensuing 20 years; and
       ``(2) identify issues that the Panel recommends for 
     assessment during the next review to be conducted under 
     section 117 of this title.
       ``(d) Report.--(1) The Panel, in the year that it is 
     conducting an assessment under subsection (c), shall submit 
     to the Secretary of Defense and to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives two reports on its activities 
     and the findings and recommendations of the Panel, including 
     any recommendations for legislation that the Panel considers 
     appropriate, as follows:
       ``(A) An interim report not later than July 1 of the year.
       ``(B) A final report not later than December 1 of the year.
       ``(2) Not later than December 15 of the year in which the 
     Secretary receive a final report under paragraph (1)(B), the 
     Secretary shall submit to the committees referred to in 
     subsection (b) a copy of the report together with the 
     Secretary's comments on the report.
       ``(e) Information From Federal Agencies.--The Panel may 
     secure directly from the Department of Defense and any of its 
     components and from any other Federal department and agency 
     such information as the Panel considers necessary to carry 
     out its duties under this section. The head of the department 
     or agency concerned shall ensure that information requested 
     by the Panel under this subsection is promptly provided.
       ``(f) Personnel Matters.--(1) Each member of the Panel 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5 for each 
     day (including travel time) during which the member is 
     engaged in the performance of the duties of the Panel.
       ``(2) The members of the Panel shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5 while away from their homes or regular 
     places of business in the performance of services for the 
     Panel.
       ``(3)(A) The chairman of the Panel may, without regard to 
     the civil service laws and regulations, appoint and terminate 
     an executive director and a staff if the Panel determines 
     that an executive director and staff are necessary in order 
     for the Panel to perform its duties effectively. The 
     employment of an executive director shall be subject to 
     confirmation by the Panel.
       ``(B) The chairman may fix the compensation of the 
     executive director without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of title 5 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay for the executive 
     director may not exceed the rate payable for level V of the 
     Executive Schedule under section 5316 of such title.
       ``(4) Any Federal Government employee may be detailed to 
     the Panel without reimbursement of the employee's agency, and 
     such detail shall be without interruption or loss of civil 
     service status or privilege. The Secretary shall ensure that 
     sufficient personnel are detailed to the Panel to enable the 
     Panel to carry out its duties effectively.
       ``(5) To the maximum extent practicable, the members and 
     employees of the Panel shall travel on military aircraft, 
     military ships, military vehicles, or other military 
     conveyances when travel is necessary in the performance of a 
     duty of the Panel, except that no such aircraft, ship, 
     vehicle, or other conveyance may be scheduled primarily for 
     the transportation of any such member or employee when the 
     cost of commercial transportation is less expensive.
       ``(g) Administrative Provisions.--(1) The Panel may use the 
     United States mails and obtain printing and binding services 
     in the same manner and under the same conditions as other 
     departments and agencies of the Federal Government.
       ``(2) The Secretary shall furnish the Panel any 
     administrative and support services requested by the Panel.
       ``(3) The Panel may accept, use, and dispose of gifts or 
     donations of services or property.
       ``(h) Payment of Panel Expenses.--The compensation, travel 
     expenses, and per diem allowances of members and employees of 
     the Panel shall be paid out of funds available to the 
     Department of Defense for the payment of compensation, travel 
     allowances, and per diem allowances, respectively, of 
     civilian employees of the Department. The other expenses of 
     the Panel shall be paid out of funds available to the 
     Department for the payment of similar expenses incurred by 
     the Department.
       ``(i) Termination.--The Panel shall terminate at the end of 
     the year following the year in which the Panel submits its 
     final report under subsection (d)(1)(B). For the period that 
     begins 90 days after the date of submittal of the report, the 
     activities and staff of the panel shall be reduced to a level 
     that the Secretary of Defense considers sufficient to 
     continue the availability of the panel for consultation with 
     the Secretary of Defense and with the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives.''.
       (c) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 2 of title 10, United States Code, is 
     amended by inserting after the item relating to section 116 
     the following:

``117. Quadrennial defense review.''.
       (2) The table of sections at the beginning of chapter 7 of 
     such title is amended by adding at the end the following:

``181. National Defense Panel.''.
       (d) Continuation of 1997 National Defense Panel.--Section 
     924(j) of the Military Force Structure Review Act of 1996 
     (subtitle B of title IX of Public Law 104-201; 110 Stat.

[[Page S7497]]

     2626; 10 U.S.C. 111 note) is amended to read as follows:
       ``(j) Termination.--The Panel shall continue until the 
     first National Defense Panel is established under section 
     181(a) of title 10, United States Code, and shall then 
     terminate. The activities and staff of the panel shall be 
     reduced to a level that the Secretary of Defense considers 
     sufficient to continue the availability of the panel for 
     consultation with the Secretary of Defense and with the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives.''.

     SEC. 906. MANAGEMENT REFORM FOR RESEARCH, DEVELOPMENT, TEST, 
                   AND EVALUATION.

       (a) Requirements for Analysis and Plan.--(1) The Secretary 
     of Defense, acting through the Under Secretary of Defense for 
     Acquisition and Technology, shall analyze the structures and 
     processes of the Department of Defense for management of its 
     laboratories and test and evaluation centers and, taking into 
     consideration the analysis, develop a plan for improving the 
     management of the laboratories and centers. The plan shall 
     include the reorganizations and reforms that the Secretary 
     considers appropriate.
       (2) The analysis shall include the following:
       (A) Opportunities to achieve efficiency and reduce 
     duplication of efforts by consolidating responsibilities for 
     research, development, test, and evaluation, by area or 
     function, in a military department as a lead agency or 
     executive agent.
       (B) Reforms of the management processes of Department of 
     Defense laboratories and test and evaluation centers that 
     would reduce costs and increase efficiency in the conduct of 
     research, development, test, and evaluation.
       (C) Opportunities for Department of Defense laboratories 
     and test and evaluation centers to enter into partnership 
     arrangements with laboratories in industry, academia, and 
     other Federal agencies that demonstrate leadership, 
     initiative, and innovation in research, development, test, 
     and evaluation.
       (D) The benefits of consolidating test ranges and test 
     facilities under one management structure.
       (E) Personnel demonstration projects and pilot projects 
     that are being carried out to address the challenges for and 
     constraints on recruitment and retention of scientists and 
     engineers.
       (F) The extent to which there is disseminated within the 
     Department of Defense laboratories and test and evaluation 
     centers information regarding initiatives that have 
     successfully improved efficiency through reform of management 
     processes and other means.
       (G) Any cost savings that can be derived directly from 
     reorganization of management structures.
       (H) Options for reinvesting any such cost savings in the 
     Department of Defense laboratories and test and evaluation 
     centers.
       (3) The Secretary shall submit the plan required under 
     paragraph (1) to the congressional defense committees not 
     later than 180 days after the date of the enactment of this 
     Act.
       (b) Cost-Based Management Information System.--(1) The 
     Secretary of Defense shall develop a plan, including a 
     schedule, for establishing a cost-based management 
     information system for Department of Defense laboratories and 
     test and evaluation centers. The system shall provide for 
     accurately identifying and comparing the costs of operating 
     each laboratory and each center.
       (2) In preparing the plan, the Secretary shall assess the 
     feasibility and desirability of establishing a common 
     methodology for assessing costs. The Secretary shall consider 
     the use of a revolving fund as one potential methodology.
       (3) The Secretary shall submit the plan required under 
     paragraph (1) to the congressional defense committees not 
     later than 90 days after the date of the enactment of this 
     Act.

     SEC. 907. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.

       (a) Administration as Nonappropriated Fund 
     Instrumentality.--(1) Chapter 147 of title 10, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 2490b. Fisher Houses: administration as 
       nonappropriated fund instrumentality

       ``(a) Fisher Houses and Suites.--(1) For the purposes of 
     this section, a Fisher House is a housing facility that--
       ``(A) is located in proximity to a health care facility of 
     the Army, the Air Force, or the Navy;
       ``(B) is available for residential use on a temporary basis 
     by patients of that health care facility, members of the 
     families of such patients, and others providing the 
     equivalent of familial support for such patients; and
       ``(C) has been constructed and donated by--
       ``(i) the Zachary and Elizabeth M. Fisher Armed Services 
     Foundation; or
       ``(ii) another source, if the Secretary designates the 
     housing facility as a Fisher House.
       ``(2) For the purposes of this section, a Fisher Suite is 
     one or more rooms that meet the requirements of subparagraph 
     (A) and (B) of paragraph (1), are constructed, altered, or 
     repaired and donated by a source described in subparagraph 
     (C) of that paragraph, and are designated by the Secretary 
     concerned as a Fisher Suite.
       ``(b) Nonappropriated Fund Instrumentality.--The Secretary 
     of a military department shall administer all Fisher Houses 
     and Fisher Suites associated with health care facilities of 
     that military department as a nonappropriated fund 
     instrumentality of the United States.
       ``(c) Governance.--The Secretary shall establish a system 
     for the governance of the nonappropriated fund 
     instrumentality.
       ``(d) Central Fund.--The Secretary shall establish a single 
     fund as the source of funding for the operation, maintenance, 
     and improvement of all Fisher Houses and Fisher Suites of the 
     nonappropriated fund instrumentality.
       ``(e) Acceptance of Contributions and Fees.--The Secretary 
     of a military department may accept money, property, and 
     services donated for the support of a Fisher House or Fisher 
     Suite, and may impose fees relating to the use of the Fisher 
     Houses and Fisher Suites. All monetary donations, and the 
     proceeds of the disposal of any other donated property, 
     accepted by the Secretary under this subsection shall be 
     credited to the fund established under subsection (d) for the 
     Fisher Houses and Fisher Suites of that military department 
     and shall be available for all Fisher Houses and Fisher 
     Suites of that military department.
       ``(f) Annual Report.--Not later than January 15 of each 
     year, the Secretary of each military department shall submit 
     a report on Fisher House operations to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives. The report shall include, at 
     a minimum, the following:
       ``(1) The amount in the fund established by the Secretary 
     for the Fisher Houses and Fisher Suites under subsection (d), 
     as of October 1 of the previous year.
       ``(2) The operation of the fund during the fiscal year 
     ending on the day before that date, including--
       ``(A) all gifts, fees, and interest credited to the fund; 
     and
       ``(B) the disbursements from the fund.
       ``(3) The budget for the operation of the Fisher Houses and 
     Fisher Suites for the fiscal year in which the report is 
     submitted.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following:

``2490b. Fisher Houses: administration as nonappropriated fund 
              instrumentality.''.
       (b) Funding Transition.--(1) Not later than 90 days after 
     the date of the enactment of this Act the Secretary of each 
     military department shall--
       (A) establish the fund required under section 2490b(d) of 
     title 10, United States Code (as added by subsection (a)); 
     and
       (B) close the Fisher House trust fund for that department 
     and transfer the amounts in the closed fund to the newly 
     established fund.
       (2) Of the amounts appropriated for the Navy pursuant to 
     section 301, the Secretary of the Navy shall transfer to the 
     fund established by the Secretary under section 2490b(d) of 
     title 10, United States Code (as added by subsection (a)) 
     such amount as the Secretary considers appropriate for 
     establishing in the fund a corpus sufficient for operating 
     Fisher Houses and Fisher Suites of the Navy.
       (3) Of the amounts appropriated for the Air Force pursuant 
     to section 301, the Secretary of the Air Force shall transfer 
     to the fund established by the Secretary under section 
     2490b(d) of title 10, United States Code (as added by 
     subsection (a)) such amount as the Secretary considers 
     appropriate for establishing in the fund a corpus sufficient 
     for operating Fisher Houses and Fisher Suites of the Air 
     Force.
       (4) The Secretary of each military department, upon 
     completing the actions required of the Secretary under the 
     preceding paragraphs of this subsection, shall submit to 
     Congress a report containing--
       (A) the Secretary's certification that those actions have 
     been completed; and
       (B) a statement of the amount deposited in the newly 
     established fund.
       (5) Amounts transferred to a fund established under section 
     2490b(d) of title 10, United States Code (as added by 
     subsection (a)), shall be available without fiscal year 
     limitation for the purposes for which the fund is established 
     and shall be administered as nonappropriated funds.
       (c) Conforming Repeals.--(1) Section 2221 of title 10, 
     United States Code, and the item relating to that section in 
     the table of sections at the beginning of chapter 131 of such 
     title, are repealed.
       (2) Section 1321(a) of title 31, United States Code, is 
     amended by striking out paragraphs (92), (93), and (94).
       (3) The amendments made by paragraphs (1) and (2) shall 
     take effect 90 days after the date of the enactment of this 
     Act.

     SEC. 908. REDESIGNATION OF DIRECTOR OF DEFENSE RESEARCH AND 
                   ENGINEERING AS DIRECTOR OF DEFENSE TECHNOLOGY 
                   AND COUNTERPROLIFERATION AND TRANSFER OF 
                   RESPONSIBILITIES.

       (a) Redesignation.--Subsection (a) of section 137 of title 
     10, United States Code, is amended by striking out ``Director 
     of Defense Research and Engineering'' and inserting in lieu 
     thereof ``Director of Defense Technology and 
     Counterproliferation''.
       (b) Duties.--Subsection (b) of such section 137 is amended 
     to read as follows:
       ``(b) The Director of Defense Technology and 
     Counterproliferation shall--
       ``(1) except as otherwise prescribed by the Secretary of 
     Defense, perform such duties relating to research and 
     engineering as the

[[Page S7498]]

     Under Secretary of Defense for Acquisition and Technology may 
     prescribe;
       ``(2) advise the Secretary of Defense on matters relating 
     to nuclear energy and nuclear weapons;
       ``(3) serve as the Staff Director of the Joint Nuclear 
     Weapons Council under section 179 of this title; and
       ``(4) perform such other duties as the Secretary of Defense 
     may prescribe.''.
       (c) Abolishment of Position of Assistant to the Secretary 
     of Defense for Nuclear and Chemical and Biological Defense 
     Programs.--Section 142 of such title is repealed.
       (d) Conforming Amendments.--(1) Title 5, United States 
     Code, is amended as follows:
       (A) In section 5315, by striking out ``Director of Defense 
     Research and Engineering'' and inserting in lieu thereof the 
     following:
       ``Director of Defense Technology and 
     Counterproliferation''.
       (B) In section 5316, by striking out ``Assistant to the 
     Secretary of Defense for Nuclear and Chemical and Biological 
     Defense Programs, Department of Defense.''.
       (2) Title 10, United States Code, is amended as follows:
       (A) In section 131(b), by striking out paragraph (6) and 
     inserting in lieu thereof the following:
       ``(6) Director of Defense Technology and 
     Counterproliferation.''.
       (B) In section 138(d), by striking out ``Director of 
     Defense Research and Engineering'' and inserting in lieu 
     thereof ``Director of Defense Technology and 
     Counterproliferation''.
       (C) In section 179(c)(2), by striking out ``Assistant to 
     the Secretary of Defense for Nuclear and Chemical and 
     Biological Defense Programs'' and inserting in lieu thereof 
     ``Director of Defense Technology and Counterproliferation''.
       (D) In section 2350a(g)(3), by striking out ``Deputy 
     Director, Defense Research and Engineering (Test and 
     Evaluation)'' and inserting in lieu thereof ``Under Secretary 
     of Defense for Acquisition and Technology''.
       (E) In section 2617(a), by striking out ``Director of 
     Defense Research and Engineering'' and inserting in lieu 
     thereof ``Director of Defense Technology and 
     Counterproliferation''.
       (F) In section 2902(b), by striking out paragraph (1) and 
     inserting in lieu thereof the following:
       ``(1) The Director of Defense Technology and 
     Counterproliferation.''.
       (3) Section 257(a) of the National Defense Authorization 
     Act for Fiscal Year 1995 (10 U.S.C. 2358 note) is amended by 
     striking out ``Director of Defense Research and Engineering'' 
     and inserting in lieu thereof ``Director of Defense 
     Technology and Counterproliferation''.
       (4) The National Defense Authorization Act for Fiscal Year 
     1994 is amended as follows:
       (A) In section 802(a) (10 U.S.C. 2358 note), by striking 
     out ``Director of Defense Research and Engineering'' and 
     inserting in lieu thereof ``Director of Defense Technology 
     and Counterproliferation''.
       (B) In section 1605(a)(5), (22 U.S.C. 2751 note) by 
     striking out ``Assistant to the Secretary of Defense for 
     Nuclear and Chemical and Biological Defense Programs'' and 
     inserting in lieu thereof ``Director of Defense Technology 
     and Counterproliferation''.
       (e) Clerical Amendments.--(1) The section heading of 
     section 137 of title 10, United States Code, is amended to 
     read as follows:

     ``Sec. 137. Director of Defense Technology and 
       Counterproliferation''.

       (2) The table of sections at the beginning of chapter 4 of 
     title 10, United States Code, is amended--
       (A) by striking out the item relating to section 137 and 
     inserting in lieu thereof the following:

``137. Director of Defense Technology and Counterproliferation.'';
     and
       (B) by striking out the item relating to section 142.

     SEC. 909. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

       (a) Funding for Center for Hemispheric Defense Studies.--
     (1) Chapter 108 of title 10, United States Code, is amended 
     by adding at the end the following:

     ``Sec. 2166. National Defense University: funding of 
       component institution

       ``Funds available for the payment of personnel expenses 
     under the Latin American cooperation authority set forth in 
     section 1050 of this title are also available for the costs 
     of the operation of the Center for Hemispheric Defense 
     Studies.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following:

``2166. National Defense University: funding of component 
              institution.''.
       (b) Conforming Amendment.--Section 1050 of title 10, United 
     States Code, is amended by inserting ``Secretary of Defense 
     or the'' before ``Secretary of a military department''.

     SEC. 910. MILITARY AVIATION ACCIDENT INVESTIGATIONS.

       (a) Findings.--Congress makes the following findings:
       (1) In February 1996, the Government Accounting Office 
     released a report highlighting a 75 percent reduction in 
     aviation Class A mishaps, a 70 percent reduction in aviation 
     mishap fatalities and a 65 percent reduction in Class A 
     mishap rates from 1975-1995 (Military Aircraft Safety--
     Significant Improvements since 1975).
       (2) In February 1998, the Government Accounting Office 
     completed a follow-up review of military aircraft safety, 
     noting that the military experienced fewer serious aviation 
     mishaps in fiscal years 1996 and 1997 than in previous fiscal 
     years (Military Aircraft Safety: Serious Accidents Remain at 
     Historically Low Levels).
       (3) The report required by section 1046 of the National 
     Defense Authorization Act for fiscal year 1998 (Public Law 
     105-85; 111 Stat. 1888) concluded, ``DoD found no evidence 
     that changing existing investigation processes to more 
     closely resemble those of the NTSB would help DoD to find 
     more answers more quickly, or accurately''.
       (4) The Department of Defense must further improve its 
     aviation safety by fully examining all options for improving 
     or replacing its current aviation accident investigation 
     processes.
       (5) The inter-service working group formed as a result of 
     that report has contributed to progress in military aviation 
     accident investigations by identifying ways to improve family 
     assistance, as has the formal policy direction coordinated by 
     the Office of the Secretary of Defense.
       (6) Such progress includes the issuance of Air Force 
     Instruction 90-701 entitled ``Assistance to Families of 
     Persons Involved in Air Force Aviation Mishaps'', that 
     attempts to meet the need for a more timely flow of relevant 
     information to families, a family liaison officer, and the 
     establishment of the Air Force Office of Family Assistance. 
     However, formal policy directions and Air Force instructions 
     have not adequately addressed the failure to provide primary 
     next of kin of members of the Armed Forces involved in 
     military aviation accidents with interim reports regarding 
     the course of investigations into such accidents, and the 
     Department of Defense must improve its procedures for 
     informing the families of the persons involved in military 
     aviation mishaps.
       (7) The report referred to in paragraph (3) concluded that 
     the Department would ``benefit from the disappearance of the 
     misperception that the privileged portion of the safety 
     investigation exists to hide unfavorable information''.
       (8) That report further specified that ``[e]ach Military 
     Department has procedures in place to place to provide 
     redacted copies of the final [privileged] safety report to 
     the families. However, families must formally request a copy 
     of the final safety investigation report''.
       (9) Current efforts to improve family notification would be 
     enhanced by the issuance by the Secretary of Defense of 
     uniform regulations to improve the timeliness and reliability 
     of information provided to the primary next of kin of persons 
     involved in military aviation accidents during and following 
     both the legal investigation and safety investigation phases 
     of such investigations.
       (b) Evaluation of Department of Defense Aviation Accident 
     Investigation Procedures.--(1) The Secretary of Defense shall 
     establish a task force to--
       (A) review the procedures employed by the Department of 
     Defense to conduct military aviation accident investigations; 
     and
       (B) identify mechanisms for improving such investigations 
     and the military aviation accident investigation process.
       (2) The Secretary shall appoint to the task force the 
     following:
       (A) An appropriate number of members of the Armed Forces, 
     including both members of the regular components and the 
     reserve components, who have experience relating to military 
     aviation or investigations into military aviation accidents.
       (B) An appropriate number of former members of the Armed 
     Forces who have such experience.
       (C) With the concurrence of the member concerned, a member 
     of the National Transportation Safety Board.
       (3)(A) The task force shall submit to Congress an interim 
     report and a final report on its activities under this 
     subsection. The interim report shall be submitted on December 
     1, 1998, and the final report shall be submitted on March 31, 
     1999.
       (B) Each report under subparagraph (A) shall include the 
     following:
       (i) An assessment of the advisability of conducting all 
     military aviation accident investigations through an entity 
     that is independent of the military departments.
       (ii) An assessment of the effectiveness of the current 
     military aviation accident investigation process in 
     identifying the cause of military aviation accidents and 
     correcting problems so identified in a timely manner.
       (iii) An assessment whether or not the procedures for 
     sharing the results of military aviation accident 
     investigations among the military departments should be 
     improved.
       (iv) An assessment of the advisability of centralized 
     training and instruction for military aircraft investigators.
       (v) An assessment of any costs or cost avoidances that 
     would result from the elimination of any overlap in military 
     aviation accident investigation activities conducted under 
     the current so-called ``two-track'' investigation process.
       (vi) Any improvements or modifications in the current 
     military aviation accident investigation process that the 
     task force considers appropriate to reduce the potential for 
     aviation accidents and increase public confidence in the 
     process.
       (c) Uniform Regulations for Release of Interim Safety 
     Investigation Reports.--(1)(A) Not later than May 1, 1999, 
     the Secretary of Defense shall prescribe regulations that 
     provide for the release to the family members of persons 
     involved in military aviation accidents, and to members of 
     the public, of reports referred to in paragraph (2).

[[Page S7499]]

       (B) The regulations shall apply uniformly to each military 
     department.
       (2) A report under paragraph (1) is a report on the 
     findings of any ongoing privileged safety investigation into 
     an accident referred to in that paragraph. Such report shall 
     be in a redacted form or other form appropriate to preserve 
     witness confidentiality and to minimize the effects of the 
     release of information in such report on national security.
       (3) Reports under paragraph (1) shall be made available--
       (A) in the case of family members, at least once every 30 
     days or upon the development of a new or significantly 
     changed finding during the course of the investigation 
     concerned; and
       (B) in the case of members of the public, on request.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 1999 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $2,000,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. AUTHORIZATION OF EMERGENCY APPROPRIATIONS FOR 
                   FISCAL YEAR 1999.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for the Department of Defense 
     for fiscal year 1999 for incremental costs of operations of 
     the Armed Forces in and around Bosnia and Herzegovina in the 
     total amount of $1,858,600,000, as follows:
       (1) For military personnel, in addition to the amounts 
     authorized to be appropriated in title IV of this Act:
       (A) For the Army, $297,700,000.
       (B) For the Navy, $9,700,000.
       (C) For the Marine Corps, $2,700,000.
       (D) For the Air Force, $33,900,000.
       (E) For the Naval Reserve, $2,200,000.
       (2) For operation and maintenance for the Overseas 
     Contingency Operations Transfer Fund, in addition to the 
     total amount authorized to be appropriated for that fund in 
     section 301(a)(25) of this Act, $1,512,400,000.
       (b) Transfer Authority.--Upon determination by the 
     Secretary of Defense that such action is necessary in the 
     national interest, the Secretary may transfer amounts of 
     authorizations made available to the Department of Defense in 
     subsection (a)(2) for fiscal year 1999 to any of the 
     authorizations for that fiscal year in section 301. Amounts 
     of authorizations so transferred shall be merged with and be 
     available for the same purposes as the authorization to which 
     transferred. The transfer authority under this subsection is 
     in addition to any other transfer authority provided in this 
     Act.
       (c) Designation as Emergency.--Funds authorized to be 
     appropriated in accordance with subsection (a) are designated 
     as emergency requirements pursuant to section 251(b)(2)(A) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985.

     SEC. 1003. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 1998.

       Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 1998 in the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85) 
     are hereby adjusted, with respect to any such authorized 
     amount, by the amount by which appropriations pursuant to 
     such authorization were increased (by a supplemental 
     appropriation) or decreased (by a rescission), or both, in 
     the 1998 Supplemental Appropriations and Rescissions Act 
     (Public Law 105-174).

     SEC. 1004. PARTNERSHIP FOR PEACE INFORMATION SYSTEM 
                   MANAGEMENT.

       Funds authorized to be appropriated under titles II and III 
     of this Act shall be available for Partnership for Peace 
     information management systems as follows:
       (1) Of the amount authorized to be appropriated under 
     section 201(4) for Defense-wide activities, $2,000,000.
       (2) Of the amount authorized to be appropriated under 
     section 301 for Defense-wide activities, $3,000,000.

     SEC. 1005. REDUCTIONS IN FISCAL YEAR 1998 AUTHORIZATIONS OF 
                   APPROPRIATIONS FOR DIVISION A AND DIVISION B 
                   AND INCREASES IN CERTAIN AUTHORIZATIONS OF 
                   APPROPRIATIONS.

       (a) Total Reduction.--Notwithstanding any other provision 
     in this division, amounts authorized to be appropriated under 
     other provisions of this division are reduced in accordance 
     with subsection (b) by the total amount of $421,900,000 in 
     order to reflect savings resulting from revised economic 
     assumptions.
       (b) Distribution of Reduction.--
       (1) Procurement.--Amounts authorized to be appropriated for 
     procurement under title I are reduced as follows:
       (A) Army.--For the Army:
       (i) Aircraft.--For aircraft under section 101(1), by 
     $4,000,000.
       (ii) Missiles.--For missiles under section 101(2), by 
     $4,000,000.
       (iii) Weapons and tracked combat vehicles.--For weapons and 
     tracked combat vehicles under section 101(3), by $4,000,000.
       (iv) Ammunition.--For ammunition under section 101(4), by 
     $3,000,000.
       (v) Other procurement.--For other procurement under section 
     101(5), by $9,000,000.
       (B) Navy and marine corps.--For the Navy, Marine Corps, or 
     both the Navy and Marine Corps:
       (i) Aircraft.--For aircraft under section 102(a)(1), by 
     $22,000,000.
       (ii) Weapons.--For weapons, including missiles and 
     torpedoes, under section 102(a)(2), by $4,000,000.
       (iii) Shipbuilding and conversion.--For shipbuilding and 
     conversion under section 102(a)(3), by $18,000,000.
       (iv) Other procurement.--For other procurement under 
     section 102(a)(4), by $12,000,000.
       (v) Marine corps procurement.--For procurement for the 
     Marine Corps under section 102(b), by $2,000,000.
       (vi) Ammunition.--For ammunition under section 102(c), by 
     $1,000,000.
       (C) Air Force.--For the Air Force:
       (i) Aircraft.--For aircraft under section 103(1), by 
     $23,000,000.
       (ii) Missiles.--For missiles under section 103(2), by 
     $7,000,000.
       (iii) Ammunition.--For ammunition under section 103(3), by 
     $1,000,000.
       (iv) Other procurement.--For other procurement under 
     section 103(4), by $17,500,000.
       (D) Defense-wide activities.--For the Department of Defense 
     for Defense-wide activities under section 104, by $5,800,000.
       (E) Chemical demilitarization program.--For the destruction 
     of lethal chemical agents and munitions and of chemical 
     warfare material under section 107, by $3,000,000.
       (2) R D T & E.--Amounts authorized to be appropriated for 
     research, development, test, and evaluation under title II 
     are reduced as follows:
       (A) Army.--For the Army under section 201(1), by 
     $10,000,000.
       (B) Navy.--For the Navy under section 201(2), by 
     $20,000,000.
       (C) Air force.--For the Air Force under section 201(3), by 
     $39,000,000.
       (D) Defense-wide activities.--For Defense-wide activities 
     under section 201(4), by $26,700,000.
       (3) Operation and maintenance.--Amounts authorized to be 
     appropriated for operation and maintenance under title III 
     are reduced as follows:
       (A) Army.--For the Army under section 301(a)(1), by 
     $24,000,000.
       (B) Navy.--For the Navy under section 301(a)(2), by 
     $32,000,000.
       (C) Marine corps.--For the Marine Corps under section 
     301(a)(3), by $4,000,000.
       (D) Air force.--For the Air Force under section 301(a)(4), 
     by $31,000,000.
       (E) Defense-wide activities.--For Defense-wide activities 
     under section 301(a)(6), by $17,600,000.
       (F) Army reserve.--For the Army Reserve under section 
     301(a)(7), by $2,000,000.
       (G) Naval reserve.--For the Naval Reserve under section 
     301(a)(8), by $2,000,000.
       (H) Air force reserve.--For the Air Force Reserve under 
     section 301(a)(10), by $2,000,000.
       (I) Army national guard.--For the Army National Guard under 
     section 301(a)(11), by $4,000,000.
       (J) Air national guard.--For the Air National Guard under 
     section 301(a)(12), by $4,000,000.
       (K) Environmental restoration, army.--For Environmental 
     Restoration, Army under section 301(a)(15), by $1,000,000.
       (L) Environmental restoration, navy.--For Environmental 
     Restoration, Navy under section 301(a)(16), by $1,000,000.
       (M) Environmental restoration, air force.--For 
     Environmental Restoration, Air Force under section 
     301(a)(17), by $1,000,000.
       (N) Environmental restoration, defense-wide.--For 
     Environmental Restoration, Defense-wide under section 
     301(a)(18), by $1,000,000.
       (O) Drug interdiction and counter-drug activities, defense-
     wide.--For Drug Interdiction and Counter-drug Activities, 
     Defense-wide under section 301(a)(21), by $2,000,000.
       (P) Medical programs, defense.--For Medical Programs, 
     Defense under section 301(a)(23), by $36,000,000.
       (4) Military construction, army.--Amounts authorized to be 
     appropriated for military construction, Army, under title XXI 
     by section 2104(a) are reduced by $5,000,000, of which 
     $3,000,000 shall be a reduction of support of military family 
     housing under section 2104(a)(5)(B).
       (5) Military construction, navy.--Amounts authorized to be 
     appropriated for

[[Page S7500]]

     military construction, Navy, under title XXII by section 
     2204(a) are reduced by $5,000,000, of which--
       (A) $1,000,000 shall be a reduction of construction and 
     acquisition of military family housing under section 
     2204(a)(5)(A); and
       (B) $3,000,000 shall be a reduction of support of military 
     family housing under section 2204(a)(5)(B).
       (6) Military construction, air force.--Amounts authorized 
     to be appropriated for military construction, Air Force, 
     under title XXIII by section 2304(a) are reduced by 
     $4,000,000, of which--
       (A) $1,000,000 shall be a reduction of construction and 
     acquisition of military family housing under section 
     2304(a)(5)(A); and
       (B) $2,000,000 shall be a reduction of support of military 
     family housing under section 2304(a)(5)(B).
       (7) Military construction, defense agencies.--Amounts 
     authorized to be appropriated for military construction, 
     Defense Agencies, under title XXIV by section 2404(a) are 
     reduced by $6,300,000, of which $5,000,000 shall be a 
     reduction of defense base closure and realignment under 
     section 2404(a)(10), of which--
       (A) $1,000,000 shall be a reduction of defense base closure 
     and realignment, Army;
       (B) $2,000,000 shall be a reduction of defense base closure 
     and realignment, Navy; and
       (C) $2,000,000 shall be a reduction of defense base closure 
     and realignment, Air Force.
       (8) North atlantic treaty organization security investment 
     program.--Amounts authorized to be appropriated for 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program under title XXV by section 2502 
     are reduced by $1,000,000.
       (c) Proportionate Reductions Within Accounts.--The amount 
     provided for each budget activity, budget activity group, 
     budget subactivity group, program, project, or activity under 
     an authorization of appropriations reduced by subsection (b) 
     is hereby reduced by the percentage computed by dividing the 
     total amount of that authorization of appropriations (before 
     the reduction) into the amount by which that total amount is 
     so reduced.
       (d) Increase in Certain Authorizations of Appropriations.--
       (1) Operation and maintenance, army national guard.--The 
     amount authorized to be appropriated by section 301(a)(11), 
     as reduced by subsection (b)(3)(I), is increased by 
     $120,000,000.
       (2) Other defense programs, department of energy.--The 
     amount authorized to be appropriated by section 3103 is 
     increased by $20,000,000, which amount shall be available for 
     verification and control technology under paragraph (1)(C) of 
     that section.

     SEC. 1006. AMOUNT AUTHORIZED FOR CONTRIBUTIONS FOR NATO 
                   COMMON-FUNDED BUDGETS.

       (a) Total Amount.--Contributions are authorized to be made 
     in fiscal year 1999 for the common-funded budgets of NATO, 
     out of funds available for the Department of Defense for that 
     purpose, in the total amount that is equal to the sum of (1) 
     the amounts of the unexpended balances, as of the end of 
     fiscal year 1998, of funds appropriated for fiscal years 
     before fiscal year 1999 for payments for such budgets, (2) 
     the amount authorized to be appropriated under section 
     301(a)(1) that is available for contributions for the NATO 
     common-funded military budget under section 314, (3) the 
     amount authorized to be appropriated under section 201(1) 
     that is available for contribution for the NATO common-funded 
     civil budget under section 219, and (4) the total amount of 
     the contributions authorized to be made under section 2501.
       (b) Definition.--In this section, the term ``common-funded 
     budgets of NATO'' means the Military Budget, the Security 
     Investment Program, and the Civil Budget of NATO (and any 
     successor or additional account or program of NATO).

                       Subtitle B--Naval Vessels

     SEC. 1011. IOWA CLASS BATTLESHIP RETURNED TO NAVAL VESSEL 
                   REGISTER.

       The U.S.S. Iowa shall be listed, and maintained, on the 
     Naval Vessel Register under section 1011 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 110 Stat. 421) instead of the U.S.S. New Jersey, 
     which shall be stricken from the register. The preceding 
     sentence does not affect the continued effectiveness of 
     subsection (d) of such section.

     SEC. 1012. LONG-TERM CHARTER OF THREE VESSELS IN SUPPORT OF 
                   SUBMARINE RESCUE, ESCORT, AND TOWING.

       (a) Authority.--The Secretary of the Navy may to enter into 
     one or more long-term charters in accordance with section 
     2401 of title 10, United States Code, for three vessels to 
     support the rescue, escort, and towing of submarines.
       (b) Vessels.--The vessels that may be chartered under 
     subsection (a) are as follows:
       (1) The Carolyn Chouest (United States official number 
     D102057).
       (2) The Kellie Chouest (United States official number 
     D1038519).
       (3) The Dolores Chouest (United States official number 
     D600288).
       (c) Charter Period.--The period for which a vessel is 
     chartered under subsection (a) may not extend beyond October 
     1, 2004.
       (d) Funding.--The funds used for charters entered into 
     under subsection (a) shall be funds authorized to be 
     appropriated under section 301(a)(2).

     SEC. 1013. TRANSFERS OF CERTAIN NAVAL VESSELS TO CERTAIN 
                   FOREIGN COUNTRIES.

       (a) Authority.--
       (1) Argentina.--The Secretary of the Navy is authorized to 
     transfer to the Government of Argentina on a grant basis the 
     tank landing ship Newport (LST 1179).
       (2) Brazil.--The Secretary of the Navy is authorized to 
     transfer vessels to the Government of Brazil as follows:
       (A) On a sale basis, the Newport class tank landing ships 
     Cayuga (LST 1186) and Peoria (LST 1183).
       (B) On a combined lease-sale basis, the Cimarron class 
     oiler Merrimack (AO 179).
       (3) Chile.--The Secretary of the Navy is authorized to 
     transfer vessels to the Government of Chile on a sale basis 
     as follows:
       (A) The Newport class tank landing ship San Bernardino (LST 
     1189).
       (B) The auxiliary repair dry dock Waterford (ARD 5).
       (4) Greece.--The Secretary of the Navy is authorized to 
     transfer vessels to the Government of Greece as follows:
       (A) On a sale basis, the following vessels:
       (i) The Oak Ridge class medium dry dock Alamogordo (ARDM 
     2).
       (ii) The Knox class frigates Vreeland (FF 1068) and Trippe 
     (FF 1075).
       (B) On a combined lease-sale basis, the Kidd class guided 
     missile destroyers Kidd (DDG 993), Callaghan (DDG 994), Scott 
     (DDG 995) and Chandler (DDG 996).
       (C) On a grant basis, the following vessels:
       (i) The Knox class frigate Hepburn (FF 1055).
       (ii) The Adams class guided missile destroyers Strauss (DDG 
     16), Semmes (DDG 18), and Waddell (DDG 24).
       (5) Mexico.--The Secretary of the Navy is authorized to 
     transfer to the Government of Mexico on a sale basis the 
     auxiliary repair dry dock San Onofre (ARD 30) and the Knox 
     class frigate Pharris (FF 1094).
       (6) Philippines.--The Secretary of the Navy is authorized 
     to transfer to the Government of the Philippines on a sale 
     basis the Stalwart class ocean surveillance ship Triumph (T-
     AGOS 4).
       (7) Portugal.--The Secretary of the Navy is authorized to 
     transfer to the Government of Portugal on a grant basis the 
     Stalwart class ocean surveillance ship Assurance (T-AGOS 5).
       (8) Spain.--The Secretary of the Navy is authorized to 
     transfer to the Government of Spain on a sale basis the 
     Newport class tank landing ships Harlan County (LST 1196) and 
     Barnstable County (LST 1197).
       (9) Taiwan.--The Secretary of the Navy is authorized to 
     transfer vessels to the Taipei Economic and Cultural 
     Representative Office in the United States (which is the 
     Taiwan instrumentality designated pursuant to section 10(a) 
     of the Taiwan Relations Act) on a sale basis as follows:
       (A) The Knox class frigates Peary (FF 1073), Joseph Hewes 
     (FF 1078), Cook (FF 1083), Brewton (FF 1086), Kirk (FF 1087) 
     and Barbey (FF 1088).
       (B) The Newport class tank landing ships Manitowoc (LST 
     1180) and Sumter (LST 1181).
       (C) The floating dry dock Competent (AFDM 6).
       (D) The Anchorage class dock landing ship Pensacola (LSD 
     38).
       (10) Turkey.--The Secretary of the Navy is authorized to 
     transfer vessels to the Government of Turkey as follows:
       (A) On a sale basis, the following vessels:
       (i) The Oliver Hazard Perry class guided missile frigates 
     Mahlon S. Tisdale (FFG 27), Reid (FFG 30) and Duncan (FFG 
     10).
       (ii) The Knox class frigates Reasoner (FF 1063), Fanning 
     (FF 1076), Bowen (FF 1079), McCandless (FF 1084), Donald 
     Beary (FF 1085), Ainsworth (FF 1090), Thomas C. Hart (FF 
     1092), and Capodanno (FF 1093).
       (B) On a grant basis, the Knox class frigates Paul (FF 
     1080), Miller (FF 1091), W.S. Simms (FF 1059).
       (11) Venezuela.--The Secretary of the Navy is authorized to 
     transfer to the Government of Venezuela on a sale basis the 
     unnamed medium auxiliary floating dry dock AFDM 2.
       (b) Bases of Transfer.--
       (1) Grant.--A transfer of a naval vessel authorized to be 
     made on a grant basis under subsection (a) shall be made 
     under section 516 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j).
       (2) Sale.--A transfer of a naval vessel authorized to be 
     made on a sale basis under subsection (a) shall be made under 
     section 21 of the Arms Export Control Act (22 U.S.C. 2761).
       (3) Combined lease-sale.--(A) A transfer of a naval vessel 
     authorized to be made on a combined lease-sale basis under 
     subsection (a) shall be made under sections 61 and 21 of the 
     Arms Export Control Act (22 U.S.C. 2796 and 2761, 
     respectively) in accordance with this paragraph.
       (B) For each naval vessel authorized by subsection (a) for 
     transfer on a lease-sale basis, the Secretary of the Navy is 
     authorized to transfer the vessel under the terms of a lease, 
     with lease payments suspended for the term of the lease, if 
     the country entering into the lease of the vessel 
     simultaneously enters into a foreign military sales agreement 
     for the transfer of title to the leased vessel. Delivery of 
     title to the purchasing country shall not be made until the 
     purchase price of the vessel has been paid in full. Upon 
     delivery of title to the purchasing country, the lease shall 
     terminate.
       (C) If the purchasing country fails to make full payment of 
     the purchase price by the date required under the sales 
     agreement, the

[[Page S7501]]

     sales agreement shall be immediately terminated, the 
     suspension of lease payments under the lease shall be 
     vacated, and the United States shall retain all funds 
     received on or before the date of the termination under the 
     sales agreement, up to the amount of the lease payments due 
     and payable under the lease and all other costs required by 
     the lease to be paid to that date. No interest shall be 
     payable to the recipient by the United States on any amounts 
     that are paid to the United States by the recipient under the 
     sales agreement and are not retained by the United States 
     under the lease.
       (c) Requirement for Provision in Advance in an 
     Appropriations Act.--Authority to transfer vessels on a sale 
     or combined lease-sale basis under subsection (a) shall be 
     effective only to the extent that authority to effectuate 
     such transfers, together with appropriations to cover the 
     associated cost (as defined in section 502 of the 
     Congressional Budget and Impoundment Control Act of 1974 (2 
     U.S.C. 661a)), are provided in advance in an appropriations 
     Act.
       (d) Notification of Congress.--Not later than 30 days after 
     the date of the enactment of this Act, the Secretary of the 
     Navy shall submit to Congress, for each naval vessel that is 
     to be transferred under this section before January 1, 1999, 
     the notifications required under section 516 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321j) and section 525 of 
     the Foreign Operations, Export Financing, and Related 
     Programs Appropriations Act, 1998 (Public Law 105-118; 111 
     Stat. 2413).
       (e) Grants not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of the naval vessels 
     authorized by subsection (a) to be transferred on a grant 
     basis under section 516 of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2321j) shall not be counted for the purposes of 
     that section in the aggregate value of excess defense 
     articles transferred to countries under that section in any 
     fiscal year.
       (f) Costs of Transfers.--Any expense of the United States 
     in connection with a transfer authorized by subsection (a) 
     shall be charged to the recipient (notwithstanding section 
     516(e)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j(e)(1)) in the case of a transfer authorized to be made 
     on a grant basis under subsection (a)).
       (g) Repair and Refurbishment in United States Shipyards.--
     The Secretary of the Navy shall require, as a condition of 
     the transfer of a vessel under this section, that the country 
     to which the vessel is transferred have such repair or 
     refurbishment of the vessel as is needed, before the vessel 
     joins the naval forces of that country, performed at a 
     shipyard located in the United States, including a United 
     States Navy shipyard.
       (h) Expiration of Authority.--The authority to transfer a 
     vessel under subsection (a) shall expire at the end of the 
     two-year period beginning on the date of the enactment of 
     this Act.

     SEC. 1014. SENSE OF CONGRESS CONCERNING THE NAMING OF AN LPD-
                   17 VESSEL.

       It is the sense of Congress that, consistent with section 
     1018 of the National Defense Authorization Act for Fiscal 
     Year 1996 (Public Law 104-106; 110 Stat. 425), the next 
     unnamed vessel of the LPD-17 class of amphibious vessels 
     should be named the U.S.S. Clifton B. Cates, in honor of 
     Marine General Clifton B. Cates (1893-1970), a native of 
     Tennessee whose distinguished career of service in the Marine 
     Corps included combat service in World War I so heroic that 
     he became the most decorated Marine Corps officer of World 
     War I, included exemplary combat leadership from Guadalcanal 
     to Tinian and Iwo Jima and beyond in the Pacific Theater 
     during World War II, and culminated in Lieutenant General 
     Cates being appointed the 19th Commandant of the Marine 
     Corps, a position in which he led the Marine Corps' efficient 
     and alacritous response to the invasion of the Republic of 
     South Korea by Communist North Korea.

     SEC. 1015. CONVEYANCE OF NDRF VESSEL EX-U.S.S. LORAIN COUNTY.

       (a) Authority To Convey.--The Secretary of Transportation 
     may convey all right, title, and interest of the Federal 
     Government in and to the vessel ex-U.S.S. LORAIN COUNTY (LST-
     1177) to the Ohio War Memorial, Inc., located in Sandusky, 
     Ohio (in this section referred to as the ``recipient''), for 
     use as a memorial to Ohio veterans.
       (b) Terms of Conveyance.--
       (1) Delivery of vessel.--In carrying out subsection (a), 
     the Secretary shall deliver the vessel--
       (A) at the place where the vessel is located on the date of 
     conveyance;
       (B) in its condition on that date; and
       (C) at no cost to the Federal Government.
       (2) Required conditions.--The Secretary may not convey a 
     vessel under this section unless--
       (A) the recipient agrees to hold the Government harmless 
     for any claims arising from exposure to hazardous materials, 
     including asbestos and polychlorinated biphenyls, after 
     conveyance of the vessel, except for claims arising before 
     the date of the conveyance of from use of the vessel by the 
     Government after that date; and
       (B) the recipient has available, for use to restore the 
     vessel, in the form of cash, liquid assets, or a written loan 
     commitment, financial resources of at least $100,000.
       (3) Additional terms.--The Secretary may require such 
     additional terms and conditions in connection with the 
     conveyance authorized by this section as the Secretary 
     considers appropriate.
       (c) Other Unneeded Equipment.--The Secretary may convey to 
     the recipient of the vessel conveyed under this section any 
     unneeded equipment from other vessels in the National Defense 
     Reserve Fleet, for use to restore the vessel conveyed under 
     this section to museum quality.

     SEC. 1016. HOMEPORTING OF THE U.S.S. IOWA BATTLESHIP IN SAN 
                   FRANCISCO.

       It is the sense of Congress that the U.S.S. Iowa should be 
     homeported at the Port of San Francisco, California.

     SEC. 1017. SHIP SCRAPPING PILOT PROGRAM.

       (a) In General.--The Secretary of the Navy shall carry out 
     a vessel scrapping pilot program within the United States 
     during fiscal years 1999 and 2000. The scope of the program 
     shall be that which the Secretary determines is sufficient to 
     gather data on the cost of scrapping Government vessels 
     domestically and to demonstrate cost effective technologies 
     and techniques to scrap such vessels in a manner that is 
     protective of worker safety and health and the environment.
       (b) Contract Award.--(1) The Secretary shall award a 
     contract or contracts under subsection (a) to the offeror or 
     offerors that the Secretary determines will provide the best 
     value to the United States, taking into account such factors 
     as the Secretary considers appropriate.
       (2) In making a best value determination under this 
     subsection, the Secretary shall give a greater weight to 
     technical and performance-related factors than to cost and 
     price-related factors.
       (3) The Secretary shall give significant weight to the 
     technical qualifications and past performance of the 
     contractor and the major subcontractors or team members of 
     the contractor in complying with applicable Federal, State, 
     and local laws and regulations for environmental and worker 
     protection. In accordance with the requirements of the 
     Federal Acquisition Regulation, in the case of an offeror 
     without a record of relevant past performance or for whom 
     information on past performance is not available, the offeror 
     may not be evaluated favorably or unfavorably on past 
     performance.
       (c) Contract Terms and Conditions.--The contract or 
     contracts awarded by the Secretary pursuant to subsection (b) 
     shall, at a minimum, provide for--
       (1) the transfer of the vessel or vessels to the contractor 
     or contractors;
       (2) the sharing, by any appropriate contracting method, of 
     the costs of scrapping the vessel or vessels between the 
     Government and the contractor or contractors;
       (3) a performance incentive for a successful record of 
     environmental and worker protection; and
       (4) Government access to contractor records in accordance 
     with the requirements of section 2313 of title 10, United 
     States Code.
       (d) Reports.--(1) Not later than September 30, 1999, the 
     Secretary of the Navy shall submit an interim report on the 
     pilot program to the congressional defense committees. The 
     report shall contain the following:
       (A) The procedures used for the solicitation and award of a 
     contract or contracts under the pilot program.
       (B) The contract or contracts awarded under the pilot 
     program.
       (2) Not later than September 30, 2000, the Secretary of the 
     Navy shall submit a final report on the pilot program to the 
     congressional defense committees. The report shall contain 
     the following:
       (A) The results of the pilot program and the performance of 
     the contractors under such program.
       (B) The Secretary's procurement strategy for future ship 
     scrapping activities.

       Subtitle C--Miscellaneous Report Requirements and Repeals

     SEC. 1021. REPEAL OF REPORTING REQUIREMENTS.

       (a) Reports Required by Title 10.--
       (1) Health and medical care studies and demonstrations.--
     Section 1092(a) of title 10, United States Code, is amended 
     by striking out paragraph (3).
       (2) Annual report on use of money rentals for leases of 
     non-excess property.--Section 2667(d) of title 10, United 
     States Code, is amended--
       (A) in paragraph (1)(A)(ii), by striking out ``paragraph 
     (4) or (5)'' and inserting in lieu thereof ``paragraph (3) or 
     (4)''.
       (B) by striking out paragraph (3); and
       (C) by redesignating paragraphs (4) and (5) as paragraphs 
     (3) and (4), respectively.
       (b) Report Required by Military Construction Authorization 
     Act.--Section 2819 of the National Defense Authorization Act, 
     Fiscal Year 1989 (Public Law 100-456; 102 Stat. 2119; 10 
     U.S.C. 2391 note,), relating to the Commission on Alternative 
     Utilization of Military Facilities, is amended--
       (1) in subsection (a) by striking out ``(a) Establishment 
     of Commission.--''; and
       (2) by striking out subsections (b) and (c).

     SEC. 1022. REPORT ON DEPARTMENT OF DEFENSE FINANCIAL 
                   MANAGEMENT IMPROVEMENT PLAN.

       Not later than 60 days after the date on which the 
     Secretary of Defense submits the first biennial financial 
     management improvement plan required by section 2222 of title 
     10, United States Code, the Comptroller General shall submit 
     to Congress an analysis of the plan. The analysis shall 
     include a discussion of the content of the plan and the 
     extent to which the plan--
       (1) complies with the requirements of such section 2222; 
     and

[[Page S7502]]

       (2) is a workable plan for addressing the financial 
     management problems of the Department of Defense.

     SEC. 1023. FEASIBILITY STUDY OF PERFORMANCE OF DEPARTMENT OF 
                   DEFENSE FINANCE AND ACCOUNTING FUNCTIONS BY 
                   PRIVATE SECTOR SOURCES OR OTHER FEDERAL 
                   GOVERNMENT SOURCES.

       (a) Study Required.--The Secretary of Defense shall carry 
     out a study of the feasibility and advisability of selecting 
     on a competitive basis the source or sources for performing 
     the finance and accounting functions of the Department of 
     Defense from among private sector sources, the Defense 
     Finance and Accounting Service of the Department of Defense, 
     the military departments, and other Federal Government 
     agencies.
       (b) Report.--Not later than October 1, 1999, the Secretary 
     shall submit a written report on the results of the study to 
     Congress. The report shall include the following:
       (1) A discussion of how the finance and accounting 
     functions of the Department of Defense are performed, 
     including the necessary operations, the operations actually 
     performed, the personnel required for the operations, and the 
     core competencies that are necessary for the performance of 
     those functions.
       (2) A comparison of the performance of the finance and 
     accounting functions by the Defense Finance and Accounting 
     Service with the performance of finance and accounting 
     functions by the other sources referred to in subsection (a) 
     that exemplify the best finance and accounting practices and 
     results, together with a comparison of the costs of the 
     performance of such functions by the Defense Finance and 
     Accounting Service and the estimated costs of the performance 
     of such functions by those other sources.
       (3) The finance and accounting functions, if any, that are 
     appropriate for performance by those other sources, together 
     with a concept of operations that--
       (A) specifies the mission;
       (B) identifies the finance and accounting operations to be 
     performed;
       (C) describes the work force that is necessary to perform 
     those operations;
       (D) discusses where the operations are to be performed;
       (E) describes how the operations are to be performed; and
       (F) discusses the relationship between how the operations 
     are to be performed and the mission.
       (4) An analysis of how Department of Defense programs or 
     processes would be affected by the performance of the finance 
     and accounting functions of the Department of Defense by one 
     or more of those other sources.
       (5) The status of the efforts within the Department of 
     Defense to consolidate and eliminate redundant finance and 
     accounting systems and to better integrate the automated and 
     manual systems of the department that provide input to 
     financial management or accounting systems of the department.
       (6) A description of a feasible and effective process for 
     selecting, on a competitive basis, sources to perform the 
     finance and accounting functions of the Department of Defense 
     from among the sources referred to in subsection (a), 
     including a discussion of the selection criteria considered 
     appropriate.
       (7) Any recommended policy for selecting sources to perform 
     the finance and accounting functions of the Department of 
     Defense on a competitive basis from among the sources 
     referred to in subsection (a), together with such other 
     recommendations that the Secretary considers appropriate.
       (8) An analysis of the costs and benefits of the various 
     policies and actions recommended.
       (9) A discussion of any findings, analyses, and 
     recommendations of the performance of the finance and 
     accounting functions of the Department of Defense that have 
     been made by the Task Force on Defense Reform appointed by 
     the Secretary of Defense.
       (c) Market Research.--In carrying out the study, the 
     Secretary shall perform market research to determine whether 
     the availability of responsible private sector sources of 
     finance and accounting services is sufficient for there to be 
     a reasonable expectation of meaningful competition for any 
     contract for the procurement of finance and accounting 
     services for the Department of Defense.

     SEC. 1024. REORGANIZATION AND CONSOLIDATION OF OPERATING 
                   LOCATIONS OF THE DEFENSE FINANCE AND ACCOUNTING 
                   SERVICE.

       (a) Limitation.--No operating location of the Defense 
     Finance and Accounting Service may be closed before the date 
     that is six months after the date on which the Secretary 
     submits to Congress the plan required by subsection (b).
       (b) Plan Required.--The Secretary of Defense shall submit 
     to Congress a strategic plan for improving the financial 
     management operations at each of the operating locations of 
     the Defense Finance and Accounting Service.
       (c) Content of Plan.--The plan shall include, at a minimum, 
     the following:
       (1) The workloads that it is necessary to perform at the 
     operating locations each fiscal year.
       (2) The capacity and number of operating locations that are 
     necessary for performing the workloads.
       (3) A discussion of the costs and benefits that could 
     result from reorganizing the operating locations of the 
     Defense Finance and Accounting Service on the basis of 
     function performed, together with the Secretary's assessment 
     of the feasibility of carrying out such a reorganization.
       (d) Submittal of Plan.--The plan shall be submitted to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives not 
     later than December 15, 1998.

     SEC. 1025. REPORT ON INVENTORY AND CONTROL OF MILITARY 
                   EQUIPMENT.

       (a) Report Required.--Not later than March 1, 1999, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on the inventory and 
     control of the military equipment of the Department of 
     Defense as of the end of fiscal year 1998. The report shall 
     address the inventories of each of the Army, Navy, Air Force, 
     and Marine Corps separately.
       (b) Content.--The report shall include the following:
       (1) For each item of military equipment in the inventory, 
     stated by item nomenclature--
       (A) the quantity of the item in the inventory as of the 
     beginning of the fiscal year;
       (B) the quantity of acquisitions of the item during the 
     fiscal year;
       (C) the quantity of disposals of the item during the fiscal 
     year;
       (D) the quantity of losses of the item during the 
     performance of military missions during the fiscal year; and
       (E) the quantity of the item in the inventory as of the end 
     of the fiscal year.
       (2) A reconciliation of the quantity of each item in the 
     inventory as of the beginning of the fiscal year with the 
     quantity of the item in the inventory as of the end of fiscal 
     year.
       (3) For each item of military equipment that cannot be 
     reconciled--
       (A) an explanation of why the quantities cannot be 
     reconciled; and
       (B) a discussion of the remedial actions planned to be 
     taken, including target dates for accomplishing the remedial 
     actions.
       (4) Supporting schedules identifying the location of each 
     item that are available to Congress or auditors of the 
     Comptroller General upon request.
       (c) Military Equipment Defined.--For the purposes of this 
     section, the term ``military equipment'' means all equipment 
     that is used in support of military missions and is 
     maintained on the visibility systems of the Army, Navy, Air 
     Force, or Marine Corps.
       (d) Inspector General Review.--Not later than June 1, 1999, 
     the Inspector General of the Department of Defense shall 
     review the report submitted to the committees under 
     subsection (a) and shall submit to the committees any 
     comments that the Inspector General considers appropriate.

     SEC. 1026. REPORT ON CONTINUITY OF ESSENTIAL OPERATIONS AT 
                   RISK OF FAILURE BECAUSE OF COMPUTER SYSTEMS 
                   THAT ARE NOT YEAR 2000 COMPLIANT.

       (a) Findings.--Congress makes the following findings:
       (1) Because of the way computers store and process dates, 
     most computers will not function properly, or at all, after 
     January 1, 2000, a problem that is commonly referred to as 
     the year 2000 problem.
       (2) The United States Government is currently conducting a 
     massive program to identify and correct computer systems that 
     suffer from the year 2000 problem.
       (3) The cost to the Department of Defense of correcting 
     this problem in its computer systems has been estimated to be 
     more than $1,000,000,000.
       (4) Other nations have failed to initiate aggressive action 
     to identify and correct the year 2000 problem within their 
     own computers.
       (5) Unless other nations initiate aggressive actions to 
     ensure the reliability and stability of certain 
     communications and strategic systems, United States 
     nationally security may be jeopardized.
       (b) Report Required.--The Secretary of Defense and the 
     Director of Central Intelligence shall jointly submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a report 
     on the plans of the Department of Defense and the 
     intelligence community for ensuring the continuity of 
     performance of essential operations that are at risk of 
     failure because of computer systems and other information and 
     support systems that are not year 2000 compliant.
       (c) Content.--The report shall contain, at a minimum, the 
     following:
       (1) A prioritization of mission critical systems to ensure 
     that the most critical systems have the highest priority for 
     efforts to reprogram computers to be year 2000 compliant.
       (2) A discussion of the private and other public 
     information and support systems relied on by the national 
     security community, including the intelligence community, and 
     the efforts under way to ensure that those systems are year 
     2000 compliant.
       (3) The efforts under way to repair the underlying 
     operating systems and infrastructure.
       (4) The plans for comprehensive testing of Department of 
     Defense systems, including simulated operational tests in 
     mission areas.
       (5) A comprehensive contingency plan, for the entire 
     national security community, which provides for resolving 
     emergencies resulting from a system that is not year 2000

[[Page S7503]]

     compliant and includes provision for the creation of crisis 
     action teams for use in resolving such emergencies.
       (6) A discussion of the efforts undertaken to ensure the 
     continued reliability of service on the systems used by the 
     President and other leaders of the United States for 
     communicating with the leaders of other nations.
       (7) A discussion of the vulnerability of allied armed 
     forces to failure systems that are not, or have critical 
     components that are not, year 2000 compliant, together with 
     an assessment of the potential problems for interoperability 
     among the Armed Forces of the United States and allied armed 
     forces because of the potential for failure of such systems.
       (8) An estimate of the total cost of making the computer 
     systems and other information and support systems comprising 
     the computer networks of the Department of Defense and the 
     intelligence community year 2000 compliant.
       (9) The countries that have critical computer-based systems 
     any disruption of which, due to not being year 2000 
     compliant, would cause a significant potential national 
     security risk to the United States.
       (10) A discussion of the cooperative arrangements between 
     the United States and other nations to assist those nations 
     in identifying and correcting (to the extent necessary to 
     meet national security interests of the United States) any 
     problems in their communications and strategic systems, or 
     other systems identified by the Secretary of Defense, that 
     make the systems not year 2000 compliant.
       (11) A discussion of the threat posed to the national 
     security interests of the United States from any potential 
     failure of strategic systems of foreign countries that are 
     not year 2000 compliant.
       (d) Submittal.--The report shall be submitted not later 
     than March 31, 1999, in classified form and, as necessary, 
     unclassified form.
       (e) International Cooperative Arrangements.--The Secretary 
     of Defense, with the concurrence of the Secretary of State 
     may enter into a cooperative arrangement with a 
     representative of any foreign government to provide for the 
     United States to assist the foreign government in identifying 
     and correcting (to the extent necessary to meet national 
     security interests of the United States) any problems in 
     communications, strategic, or other systems of that foreign 
     government that make the systems not year 2000 compliant.
       (f) Year 2000 Compliant.--In this section, the term ``year 
     2000 compliant'', with respect to a computer system or any 
     other information or support system, means that the programs 
     of the system correctly recognize dates in years after 1999 
     as being dates after 1999 for the purposes of program 
     functions for which the correct date is relevant to the 
     performance of the functions.

     SEC. 1027. REPORTS ON NAVAL SURFACE FIRE-SUPPORT 
                   CAPABILITIES.

       (a) Navy Report.--(1) Not later than March 31, 1999, the 
     Secretary of the Navy shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on battleship 
     readiness for meeting requirements of the Armed Forces for 
     naval surface fire support.
       (2) The report shall contain the following:
       (A) The reasons for the Secretary's failure to comply with 
     the requirements of section 1011 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 421) until February 1998.
       (B) The requirements for Air-Naval Gunfire Liaison 
     Companies.
       (C) The plans of the Navy for retaining and maintaining 16-
     inch ammunition for the main guns of battleships.
       (D) The plans of the Navy for retaining the hammerhead 
     crane essential for lifting battleship turrets.
       (E) An estimate of the cost of reactivating Iowa-class 
     battleships for listing on the Naval Vessel Register, 
     restoring the vessels to seaworthiness with operational 
     capabilities necessary to meet requirements for naval surface 
     fire-support, and maintaining the battleships in that 
     condition for continued listing on the register, together 
     with an estimate of the time necessary to reactivate and 
     restore the vessels to that condition.
       (3) The Secretary shall act through the Director of 
     Expeditionary Warfare Division (N85) of the Office of the 
     Chief of Naval Operations in preparing the report.
       (b) GAO Report.--(1) The Comptroller General shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives a report on the naval surface fire-support 
     capabilities of the Navy.
       (2) The report shall contain the following:
       (A) An assessment of the extent of the compliance by the 
     Secretary of the Navy with the requirements of section 1011 
     of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106; 110 Stat. 421).
       (B) The plans of the Navy for executing the naval surface 
     fire-support mission of the Navy.
       (C) An assessment of the short-term costs and the long-term 
     costs associated with the plans.
       (D) An assessment of the short-term costs and the long-term 
     costs associated with alternative methods for executing the 
     naval surface fire-support mission of the Navy, including the 
     alternative of reactivating two battleships.

     SEC. 1028. REPORT ON ROLES IN DEPARTMENT OF DEFENSE AVIATION 
                   ACCIDENT INVESTIGATIONS.

       (a) Report Required.--Not later than March 31, 1999, the 
     Secretary of Defense shall submit to Congress a report on the 
     roles of the Office of the Secretary of Defense and the Joint 
     Staff in the investigation of Department of Defense aviation 
     accidents.
       (b) Content of Report.--The report shall include the 
     following:
       (1) An assessment of whether the Office of the Secretary of 
     Defense and the Joint Staff should have more direct 
     involvement in the investigation of military aviation 
     accidents.
       (2) The advisability of the Office of the Secretary of 
     Defense, the Joint Staff, or another Department of Defense 
     entity independent of the military departments supervising 
     the conduct of aviation accident investigations.
       (3) An assessment of the minimum training and experience 
     required for aviation accident investigation board presidents 
     and board members.

     SEC. 1029. STRATEGIC PLAN FOR EXPANDING DISTANCE LEARNING 
                   INITIATIVES.

       (a) Plan Required.--The Secretary of Defense shall develop 
     a strategic plan for guiding and expanding distance learning 
     initiatives within the Department of Defense. The plan shall 
     provide for an expansion of such initiatives over five 
     consecutive fiscal years beginning with fiscal year 2000.
       (b) Content of Plan.--The strategic plan shall, at a 
     minimum, contain the following:
       (1) A statement of measurable goals and objectives and 
     outcome-related performance indicators (consistent with 
     section 1115 of title 31, United States Code, relating to 
     agency performance plans) for the development and execution 
     of distance learning initiatives throughout the Department of 
     Defense.
       (2) A detailed description of how distance learning 
     initiatives are to be developed and managed within the 
     Department of Defense.
       (3) An assessment of the estimated costs and the benefits 
     associated with developing and maintaining an appropriate 
     infrastructure for distance learning.
       (4) A statement of planned expenditures for the investments 
     necessary to build and maintain the infrastructure.
       (5) A description of the mechanisms that are to be used to 
     supervise the development and coordination of the distance 
     learning initiatives of the Department of Defense.
       (c) Relationship to Existing Initiative.--In developing the 
     strategic plan, the Secretary may take into account the 
     ongoing collaborative effort among the Department of Defense, 
     other Federal agencies, and private industry that is known as 
     the Advanced Distribution Learning initiative. However, the 
     Secretary shall ensure that the strategic plan is 
     specifically focused on the training and education goals and 
     objectives of the Department of Defense.
       (d) Submission to Congress.--The Secretary of Defense shall 
     submit the strategic plan to Congress not later than March 1, 
     1999.

     SEC. 1030. REPORT ON INVOLVEMENT OF ARMED FORCES IN 
                   CONTINGENCY AND ONGOING OPERATIONS.

       (a) Report Required.--Not later than January 31, 1999, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the involvement of the Armed 
     Forces of the United States in major contingency operations 
     and major ongoing operations since the end of the Persian 
     Gulf War, including such operations as the involvement in the 
     Stabilization Force in Bosnia and Herzegovina, Operation 
     Southern Watch, and Operation Northern Watch. The report 
     shall contain the following:
       (1) A discussion of the effects of that involvement on 
     retention and reenlistment of personnel in the Armed Forces.
       (2) The extent to which the use of combat support and 
     combat service support personnel and equipment of the Armed 
     Forces in the operations has resulted in shortages of Armed 
     Forces personnel and equipment in other regions of the world.
       (3) The accounts from which funds have been drawn to pay 
     for the operations and the specific programs for which the 
     funds were available until diverted to pay for the 
     operations.
       (4) The vital interests of the United States that are 
     involved in each operation or, if none, the interests of the 
     United States that are involved in each operation and a 
     characterization of those interests.
       (5) What clear and distinct objectives guide the activities 
     of United States forces in each operation.
       (6) What the President has identified on the basis of those 
     objectives as the date, or the set of conditions, that 
     defines the end of each operation.
       (b) Form of Report.--The report shall be submitted in 
     unclassified form, but may also be submitted in a classified 
     form if necessary.
       (c) Major Operation Defined.--For the purposes of this 
     section, a contingency operation or an ongoing operation is a 
     major contingency operation or a major ongoing operation, 
     respectively, if the operation involves more than 500 members 
     of the Armed Forces.

     SEC. 1031. SUBMISSION OF REPORT ON OBJECTIVES OF A 
                   CONTINGENCY OPERATION WITH FIRST REQUEST FOR 
                   FUNDING THE OPERATION.

       (a) Findings.--Congress makes the following findings:
       (1) On May 3, 1994, the President issued Presidential 
     Decision Directive 25 declaring

[[Page S7504]]

     that American participation in United Nations and other peace 
     operations would depend in part on whether the role of United 
     States forces is tied to clear objectives and an endpoint for 
     United States participation can be identified.
       (2) Between that date and mid-1998, the President and other 
     executive branch officials have obligated or requested 
     appropriations of approximately $9,400,000,000 for military-
     related operations throughout Bosnia and Herzegovina without 
     providing to Congress, in conjunction with the budget 
     submission for any fiscal year, a strategic plan for such 
     operations under the criteria set forth in that Presidential 
     Decision Directive.
       (3) Between November 27, 1995, and mid-1998 the President 
     has established three deadlines, since elapsed, for the 
     termination of United States military-related operations 
     throughout Bosnia and Herzegovina.
       (4) On December 17, 1997, the President announced that 
     United States ground combat forces would remain in Bosnia and 
     Herzegovina for an unknown period of time.
       (5) Approximately 47,880 United States military personnel 
     (excluding personnel serving in units assigned to the 
     Republic of Korea) have participated in 14 international 
     contingency operations between fiscal years 1991 and 1998.
       (6) The 1998 posture statements of the Navy and Air Force 
     included declarations that the pace of military operations 
     over fiscal year 1997 adversely affected the readiness of 
     non-deployed forces, personnel retention rates, and spare 
     parts inventories of the Navy and Air Force.
       (b) Information To Be Reported With Funding Request.--
     Section 113 of title 10, United States Code, is amended by 
     adding at the end the following:
       ``(l) Information To Accompany Initial Funding Request for 
     Contingency Operation.--Whenever the President submits to 
     Congress a request for appropriations for costs associated 
     with a contingency operation that involves, or likely will 
     involve, the deployment of more than 500 members of the armed 
     forces, the Secretary of Defense shall submit to Congress a 
     report on the objectives of the operation. The report shall 
     include a discussion of the following:
       ``(1) What clear and distinct objectives guide the 
     activities of United States forces in the operation.
       ``(2) What the President has identified on the basis of 
     those objectives as the date, or the set of conditions, that 
     defines the endpoint of the operation.''.

     SEC. 1032. REPORTS ON THE DEVELOPMENT OF THE EUROPEAN 
                   SECURITY AND DEFENSE IDENTITY.

       (a) Requirement for Reports.--The Secretary of Defense 
     shall submit to the congressional defense committees in 
     accordance with this section reports on the development of 
     the European Security and Defense Identity (ESDI) within the 
     NATO Alliance that would enable the Western European Union 
     (WEU), with the consent of the NATO Alliance, to assume the 
     political control and strategic direction of NATO assets and 
     capabilities made available by the Alliance.
       (b) Reports To Be Submitted.--The reports required to be 
     submitted under subsection (a) are as follows:
       (1) An initial report, submitted not later than December 
     15, 1998, that contains a discussion of the actions taken, 
     and the plans for future actions, to build the European 
     Security and Defense Identity, together with the matters 
     required under subsection (c).
       (2) A semiannual report on the progress made toward 
     establishing the European Security and Defense Identity, 
     submitted not later than March 15 and December 15 of each 
     year after 1998.
       (c) Content of Reports.--The Secretary shall include in 
     each report under this section the following:
       (1) A discussion of the arrangements between NATO and the 
     Western European Union for the release, transfer, monitoring, 
     return, and recall of NATO assets and capabilities.
       (2) A discussion of the development of such planning and 
     other capabilities by the Western European Union that are 
     necessary to provide political control and strategic 
     direction of NATO assets and capabilities.
       (3) A discussion of the development of terms of reference 
     for the Deputy Supreme Allied Commander, Europe, with respect 
     to the European Security and Defense Identity.
       (4) A discussion of the arrangements for the assignment or 
     appointment of NATO officers to serve in two positions 
     concurrently (commonly referred to as ``dual-hatting'').
       (5) A discussion of the development of the Combined Joint 
     Task Force (CJTF) concept, including lessons-learning from 
     the NATO-led Stabilization Force in Bosnia.
       (6) Identification within the NATO Alliance of the types of 
     separable but not separate capabilities, assets, and support 
     assets for Western European Union-led operations.
       (7) Identification of separable but not separate 
     headquarters, headquarters elements, and command positions 
     for command and conduct of Western European Union-led 
     operations.
       (8) The conduct by NATO, at the request of and in 
     coordination with the Western European Union, of military 
     planning and exercises for illustrative missions.
       (9) A discussion of the arrangements between NATO and the 
     Western European Union for the sharing of information, 
     including intelligence.
       (10) Such other information as the Secretary considers 
     useful for a complete understanding of the establishment of 
     the European Security and Defense Identity within the NATO 
     Alliance.
       (d) Termination of Semiannual Reporting Requirement.--No 
     report is required under subsection (b)(2) after the 
     Secretary submits under that subsection a report in which the 
     Secretary states that the European Security and Defense 
     Identity has been fully established.

     SEC. 1033. REPORT ON REDUCTION OF INFRASTRUCTURE COSTS AT 
                   BROOKS AIR FORCE BASE, TEXAS.

       (a) Requirement.--Not later than December 31, 1998, the 
     Secretary of the Air Force shall, in consultation with the 
     Secretary of Defense, submit to the congressional defense 
     committees a report on means of reducing significantly the 
     infrastructure costs at Brooks Air Force Base, Texas, while 
     also maintaining or improving the support for Department of 
     Defense missions and personnel provided through Brooks Air 
     Force Base.
       (b) Elements.--The report shall include the following:
       (1) A description of any barriers (including barriers under 
     law and through policy) to improved infrastructure management 
     at Brooks Air Force Base.
       (2) A description of means of reducing infrastructure 
     management costs at Brooks Air Force Base through cost-
     sharing arrangements and more cost-effective utilization of 
     property.
       (3) A description of any potential public partnerships or 
     public-private partnerships to enhance management and 
     operations at Brooks Air Force Base.
       (4) An assessment of any potential for expanding 
     infrastructure management opportunities at Brooks Air Force 
     Base as a result of initiative considered at the Base or at 
     other installations.
       (5) An analysis (including appropriate data) on current and 
     projected costs of the ownership or lease of Brooks Air Force 
     Base under a variety of ownership or leasing scenarios, 
     including the savings that would accrue to the Air Force 
     under such scenarios and a schedule for achieving such 
     savings.
       (6) Any recommendations relating to reducing the 
     infrastructure costs at Brooks Air Force Base that the 
     Secretary considers appropriate.

     SEC. 1034. ANNUAL GAO REVIEW OF F/A-18E/F AIRCRAFT PROGRAM.

       (a) Review and Report Required.--Not later than June 15 of 
     each year, the Comptroller General shall review the F/A-18E/F 
     aircraft program and submit to Congress a report on the 
     results of the review. The Comptroller General shall also 
     submit to Congress with each report a certification regarding 
     whether the Comptroller General has had access to sufficient 
     information to make informed judgments on the matters covered 
     by the report.
       (b) Content of Report.--The report submitted on the program 
     each year shall include the following:
       (1) The extent to which engineering and manufacturing 
     development and operational test and evaluation under the 
     program are meeting the goals established for engineering and 
     manufacturing development and operational test and evaluation 
     under the program, including the performance, cost, and 
     schedule goals.
       (2) The status of modifications expected to have a 
     significant effect on the cost or performance of the F/A-18E/
     F aircraft.
       (c) Duration of Requirement.--The Comptroller General shall 
     submit the first report under this section not later than 
     June 15, 1999. No report is required under this section after 
     the full rate production contract is awarded under the 
     program.
       (d) Requirement to Support Annual GAO Review.--The 
     Secretary of Defense and the prime contractors under the F/A-
     18E/F aircraft program shall timely provide the Comptroller 
     General with such information on the program, including 
     information on program performance, as the Comptroller 
     General considers necessary to carry out the responsibilities 
     under this section.

     SEC. 1035. REVIEW AND REPORT REGARDING THE DISTRIBUTION OF 
                   NATIONAL GUARD RESOURCES AMONG STATES.

       (a) Requirement for Review.--The Chief of the National 
     Guard Bureau shall review the process used for allocating and 
     distributing resources, including all categories of full-time 
     manning, among the States for the National Guard of the 
     States.
       (b) Purpose of Review.--The purpose of the review is to 
     determine whether the process provides for adequately funding 
     the National Guard of the States that have within the 
     National Guard no unit or few (15 or less) units categorized 
     in readiness tiers I, II, and III.
       (c) Matters Reviewed.--The matters reviewed shall include 
     the following:
       (1) The factors considered for the process of determining 
     the distribution of resources, including the weights assigned 
     to the factors.
       (2) The extent to which the process results in funding for 
     the units of the States described in subsection (b) at the 
     levels necessary to optimize the preparedness of the units to 
     meet the mission requirements applicable to the units.
       (3) The effects that funding at levels determined under the 
     process will have on the National Guard of those States in 
     the future, including the effects on all categories of full-
     time manning, and unit readiness, recruitment, and continued 
     use of existing National Guard armories and other facilities.
       (d) Report.--Not later than March 15, 1999, the Chief of 
     the National Guard Bureau shall

[[Page S7505]]

     submit a report on the results of the review to the 
     congressional defense committees.

     SEC. 1036. REPORT ON THE PEACEFUL EMPLOYMENT OF FORMER SOVIET 
                   EXPERTS ON WEAPONS OF MASS DESTRUCTION.

       (a) Report Required.--Not later than January 31, 1999, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the need for and the 
     feasibility of programs, other than those involving the 
     development or promotion of commercially viable proposals, to 
     further United States nonproliferation objectives regarding 
     former Soviet experts in ballistic missiles or weapons of 
     mass destruction. The report shall contain an analysis of the 
     following:
       (1) The number of such former Soviet experts who are, or 
     are likely to become within the coming decade, unemployed, 
     underemployed, or unpaid and, therefore, at risk of accepting 
     export orders, contracts, or job offers from countries 
     developing weapons of mass destruction.
       (2) The extent to which the development of nonthreatening, 
     commercially viable products and services, with or without 
     United States assistance, can reasonably be expected to 
     employ such former experts.
       (3) The extent to which projects that do not involve the 
     development of commercially viable products or services could 
     usefully employ additional such former experts.
       (4) The likely cost and benefits of a 10-year program of 
     United States or international assistance to projects of the 
     sort discussed in paragraph (3).
       (b) Consultation Requirement.--The report shall be prepared 
     in consultation with the Secretary of State, the Secretary of 
     Energy, and such other officials as the Secretary of Defense 
     considers appropriate.

                       Subtitle D--Other Matters

     SEC. 1041. COOPERATIVE COUNTERPROLIFER- ATION PROGRAM.

       (a) Assistance Authorized.--Subject to subsection (b), the 
     Secretary of Defense may provide a foreign country or any of 
     its instrumentalities with assistance that the Secretary 
     determines necessary for destroying, removing, or obtaining 
     from that country--
       (1) weapons of mass destruction; or
       (2) materials, equipment, or technology related to the 
     delivery or development of weapons of mass destruction.
       (b) Certification Required.--(1) Not later than 15 days 
     before providing assistance under subsection (a) regarding 
     weapons, materials, equipment, or technology referred to in 
     that subsection, the Secretary of Defense shall certify to 
     the congressional defense committees that the weapons, 
     materials, equipment, or technology meet each of the 
     following requirements:
       (A) The weapons, materials, equipment, or technology are at 
     risk of being sold or otherwise transferred to a restricted 
     foreign state or entity.
       (B) The transfer of the weapons, materials, equipment, or 
     technology would pose a significant threat to national 
     security interests of the United States or would 
     significantly advance a foreign country's weapon program that 
     threatens national security interests of the United States.
       (C) Other options for securing or otherwise preventing the 
     transfer of the weapons, materials, equipment, or technology 
     have been considered and rejected as ineffective or 
     inadequate.
       (2) The Secretary may waive the deadline for submitting a 
     certification required under paragraph (1) in any case if the 
     Secretary determines that compliance with the requirement 
     would compromise national security objectives of the United 
     States in that case. The Secretary shall promptly notify the 
     Chairman and ranking minority members of the congressional 
     defense committees regarding the waiver and submit the 
     certification not later than 45 days after completing the 
     action of providing the assistance in the case.
       (3) No assistance may be provided under subsection (a) in 
     any case unless the Secretary submits the certification 
     required under paragraph (1) or a notification required under 
     paragraph (2) in such case.
       (c) Annual Reports.--(1) Not later than January 30 of each 
     year, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the activities 
     carried out under this section. The first annual report shall 
     be submitted not later than January 30, 2000.
       (2) Each annual report shall set forth in separate sections 
     for the previous year the following:
       (A) The assistance provided under this section and the 
     purposes for which provided.
       (B) The sources of funds for the assistance provided.
       (C) Any assistance provided for the Department of Defense 
     under this section by any other department or agency of the 
     Federal Government, together with the source or sources of 
     that assistance.
       (D) Any other information that the Secretary considers 
     appropriate for informing the appropriate congressional 
     committees about actions taken under this section.
       (d) Definitions.--In this section:
       (1) The term ``restricted foreign state or entity'', with 
     respect to weapons, materials, equipment, or technology 
     covered by a certification of the Secretary of Defense under 
     subsection (b), means--
       (A) any foreign country the government of which has 
     repeatedly provided support for acts of international 
     terrorism, as determined by the Secretary of State determines 
     under section 620A of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2371); or
       (B) any foreign state or entity that the Secretary of 
     Defense determines would constitute a military threat to the 
     territory of the United States, national security interests 
     of the United States, or allies of the United States, if that 
     foreign state or entity were to possess the weapons, 
     materials, equipment, or technology.
       (2) The term ``weapon of mass destruction'' has the meaning 
     given that term in section 1402 of the Defense Against 
     Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).

     SEC. 1042. EXTENSION OF COUNTERPROLIFERA- TION AUTHORITIES 
                   FOR SUPPORT OF UNITED NATIONS SPECIAL 
                   COMMISSION ON IRAQ.

       Section 1505 of the Weapons of Mass Destruction Control Act 
     of 1992 (title XV of Public Law 102-484; 22 U.S.C. 5859a) is 
     amended--
       (1) in subsection (d)(3), by striking out ``or $15,000,000 
     for fiscal year 1998'' and inserting in lieu thereof ``or 
     $15,000,000 for each of fiscal years 1998 and 1999''; and
       (2) in subsection (f), by striking out ``fiscal year 1998'' 
     and inserting in lieu thereof ``fiscal year 1999''.

     SEC. 1043. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR 
                   DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY 
                   SYSTEMS.

       Section 1302 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1948) is 
     amended--
       (1) by striking out ``during fiscal year 1998'' each place 
     it appears and inserting in lieu thereof ``during any fiscal 
     year''; and
       (2) by adding at the end the following:
       ``(g) Applicability to Fiscal Years 1998 and 1999.--This 
     section applies to fiscal years 1998 and 1999.''.

     SEC. 1044. DIRECT-LINE COMMUNICATION BETWEEN UNITED STATES 
                   AND RUSSIAN COMMANDERS OF STRATEGIC FORCES.

       (a) Sense of Congress.--It is the sense of Congress that a 
     direct line of communication between the commanders in chief 
     of the United States Strategic and Space Commands and the 
     Commander of the Russian Strategic Rocket Forces could be a 
     useful confidence-building tool.
       (b) Report.--Not later than two months after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     to the Committee on National Security of the House of 
     Representatives a report on the feasibility of initiating 
     discussions on direct-line communication described in 
     subsection (a).

     SEC. 1045. CHEMICAL WARFARE DEFENSE.

       (a) Review and Modification of Policies and Doctrine.--The 
     Secretary of Defense shall review the policies and doctrines 
     of the Department of Defense on chemical warfare defense and 
     modify the policies and doctrine as appropriate to achieve 
     the objectives set forth in subsection (b).
       (b) Objectives.--The objectives for the modification of 
     policies and doctrines of the Department of Defense on 
     chemical warfare defense are as follows:
       (1) To provide for adequate protection of personnel from 
     any low-level exposure to a chemical warfare agent that would 
     endanger the health of exposed personnel because of the 
     deleterious effects of--
       (A) a single exposure to the agent;
       (B) exposure to the agent concurrently with other dangerous 
     exposures, such as exposures to--
       (i) other potentially toxic substances in the environment, 
     including pesticides, other insect and vermin control agents, 
     and environmental pollutants;
       (ii) low-grade nuclear and electromagnetic radiation 
     present in the environment;
       (iii) preventive medications (that are dangerous when taken 
     concurrently with other dangerous exposures referred to in 
     this paragraph); and
       (iv) occupational hazards, including battlefield hazards; 
     and
       (C) repeated exposures to the agent, or some combination of 
     one or more exposures to the agent and other dangerous 
     exposures referred to in subparagraph (B), over time.
       (2) To provide for--
       (A) the prevention of and protection against, and the 
     detection (including confirmation) of, exposures to a 
     chemical warfare agent (whether intentional or inadvertent) 
     at levels that, even if not sufficient to endanger health 
     immediately, are greater than the level that is recognized 
     under Department of Defense policies as being the maximum 
     safe level of exposure to that agent for the general 
     population; and
       (B) the recording, reporting, coordinating, and retaining 
     of information on possible exposures described in 
     subparagraph (A), including the monitoring of the health 
     effects of exposures on humans and animals, and the 
     documenting and reporting of those health effects 
     specifically by location.
       (3) Provide solutions for the concerns and mission 
     requirements that are specifically applicable for one or more 
     of the Armed Forces in a protracted conflict when exposures 
     to chemical agents could be complex, dynamic, and occurring 
     over an extended period.
       (c) Research Program.--The Secretary of Defense shall 
     develop and carry out a plan to establish a research program 
     for determining the effects of chronic and low-dose exposures 
     to chemical warfare agents. The research shall be designed to 
     yield results that can

[[Page S7506]]

     guide the Secretary in the evolution of policy and doctrine 
     on low-level exposures to chemical warfare agents. The plan 
     shall state the objectives and scope of the program and 
     include a 5-year funding plan.
       (d) Report.--Not later than May 1, 1999, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the results of the 
     review under subsection (a) and on the research program 
     developed under subsection (c). The report shall include the 
     following:
       (1) Each modification of chemical warfare defense policy 
     and doctrine resulting from the review.
       (2) Any recommended legislation regarding chemical warfare 
     defense.
       (3) The plan for the research program.

     SEC. 1046. ACCOUNTING TREATMENT OF ADVANCE PAYMENT OF 
                   PERSONNEL.

       (a) Treatment.--Section 1006 of title 37, United States 
     Code, is amended by adding at the end the following:
       ``(l) Notwithstanding any provision of chapter 15 of title 
     31, an amount paid a member under this section in advance of 
     the fiscal year in which the member's entitlement to that 
     amount accrues--
       ``(1) shall be treated as being obligated and expended in 
     that fiscal year; and
       ``(2) may not be treated as reducing the unobligated 
     balance of the appropriations available for military 
     personnel, Reserve personnel, or National Guard personnel, as 
     the case may be, for the fiscal year in which paid.''.
       (b) Applicability.--Subsection (l) of section 1006 of title 
     37, United States Code (as added by subsection (a)), shall 
     apply to advance payments made under such section in fiscal 
     years beginning after September 30, 1997.

     SEC. 1047. REINSTATEMENT OF DEFINITION OF FINANCIAL 
                   INSTITUTION IN AUTHORITIES FOR REIMBURSING 
                   DEFENSE PERSONNEL FOR GOVERNMENT ERRORS IN 
                   DIRECT DEPOSITS OF PAY.

       (a) Members of the Armed Forces.--Section 1053(d)(1) of 
     title 10, United States Code, is amended to read as follows:
       ``(1) The term `financial institution' means a bank, 
     savings and loan association or similar institution, or a 
     credit union chartered by the United States Government or a 
     State.''.
       (b) Civilian Employees.--Section 1594(d)(1) of title 10, 
     United States Code, is amended to read as follows:
       ``(1) The term `financial institution' means a bank, 
     savings and loan association or similar institution, or a 
     credit union chartered by the United States Government or a 
     State.''.

     SEC. 1048. PILOT PROGRAM ON ALTERNATIVE NOTICE OF RECEIPT OF 
                   LEGAL PROCESS FOR GARNISHMENT OF FEDERAL PAY 
                   FOR CHILD SUPPORT AND ALIMONY.

       (a) Program Required.--The Secretary of Defense shall 
     conduct a pilot program on alternative notice procedures for 
     withholding or garnishment of pay for the payment of child 
     support and alimony under section 459 of the Social Security 
     Act (42 U.S.C. 659).
       (b) Purpose.--The purpose of the pilot program is to test 
     the efficacy of providing notice in accordance with 
     subsection (c) to the person whose pay is to be withheld or 
     garnisheed.
       (c) Notice Requirements.--Under the pilot program, if an 
     agent designated under paragraph (1) of section 459(c) of the 
     Social Security Act for members of the Armed Forces or 
     employees of the Department of Defense receives notice or 
     service of a court order, notice to withhold, or other legal 
     process regarding a child support or alimony obligation of 
     such a member or employee, the agent may omit from the notice 
     that the agent sends to the member or employee under 
     paragraph (2)(A) of that section the copy of the notice or 
     service received by the agent. The agent shall include in the 
     notice, which shall be in writing, the following:
       (1) A description of the court order, notice to withhold, 
     or other legal process.
       (2) The identity of the court, administrative agency, or 
     official that issued the order.
       (3) The case number assigned by the court, administrative 
     agency, or official.
       (4) The amount of the obligation.
       (5) The name of each person for whom the support or alimony 
     is provided.
       (6) The name, address, and telephone number of the person 
     or office from which a copy of the notice or service may be 
     obtained.
       (d) Period of Pilot Program.--The Secretary shall commence 
     the pilot program not later than 90 days after the date of 
     the enactment of this Act. The pilot program shall terminate 
     on September 30, 2000.
       (e) Report.--Not later than April 1, 2001, the Secretary 
     shall submit a report on the pilot program to Congress. The 
     report shall contain the following:
       (1) The number of notices that were issued in accordance 
     with subsection (c) during the period of the pilot program.
       (2) The number of persons who requested copies of the 
     notice or service of the court order, notice of withholding, 
     or other legal process involved.
       (3) Any communication received by the Secretary or an agent 
     referred to in subsection (c) complaining about not being 
     furnished a copy of the notice or service of the court order, 
     notice of withholding, or other legal process with the 
     agent's notice.

     SEC. 1049. COSTS PAYABLE TO THE DEPARTMENT OF DEFENSE AND 
                   OTHER FEDERAL AGENCIES FOR SERVICES PROVIDED TO 
                   THE DEFENSE COMMISSARY AGENCY.

       (a) Limitation.--Section 2482(b)(1) of title 10, United 
     States Code, is amended by adding at the end the following: 
     ``However, the Defense Commissary Agency may not pay for any 
     such service any amount that exceeds the price at which the 
     service could be procured in full and open competition (as 
     such term is defined in section 4(6) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(6)).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act 
     and shall apply with respect to services provided or obtained 
     on or after that date.

     SEC. 1050. COLLECTION OF DISHONORED CHECKS PRESENTED AT 
                   COMMISSARY STORES.

       Section 2486 of title 10, United States Code, is amended by 
     adding at the end the following:
       ``(g) Collection of Dishonored Checks.--(1) The Secretary 
     of Defense may impose a charge for the collection of a check 
     accepted at a commissary store that is not honored by the 
     financial institution on which the check is drawn. The 
     imposition and amounts of charges shall be consistent with 
     practices of commercial grocery stores regarding dishonored 
     checks.
       ``(2)(A) The following persons are liable to the United 
     States for the amount of a check referred to in paragraph (1) 
     that is returned unpaid to the United States, together with 
     any charge imposed under that paragraph:
       ``(i) The person who presented the check.
       ``(ii) Any person whose status and relationship to the 
     person who presented the check provide the basis for that 
     person's eligibility to make purchases at a commissary store.
       ``(B) Any amount for which a person is liable under 
     subparagraph (A) may be collected by deducting and 
     withholding such amount from any amounts payable to that 
     person by the United States.
       ``(3) Amounts collected as charges imposed under paragraph 
     (1) shall be credited to the commissary trust revolving fund.
       ``(4) Appropriated funds may be used to pay any costs 
     incurred in the collection of checks and charges referred to 
     in paragraph (1). An appropriation account charged a cost 
     under the preceding sentence shall be reimbursed the amount 
     of that cost out of funds in the commissary trust revolving 
     fund.
       ``(5) In this subsection, the term `commissary trust 
     revolving fund' means the trust revolving fund maintained by 
     the Department of Defense for surcharge collections and 
     proceeds of sales of commissary stores.''.

     SEC. 1051. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.

       (a) Use of FTS 2000 / 2001.--The Secretary of Defense shall 
     prescribe in regulations authority for the Defense Commissary 
     Agency to meet its telecommunication requirements by 
     obtaining telecommunication services and related items under 
     the FTS 2000 / 2001 contract through a frame relay system 
     procured for the agency.
       (b) Report.--Upon the initiation of telecommunication 
     service for the Defense Commissary Agency under the FTS 2000 
     / 2001 contract through the frame relay system, the Secretary 
     of Defense shall submit to Congress a notification that the 
     service has been initiated.
       (c) Definition.--In this section, the term ``FTS 2000 / 
     2001 contract'' means the contract for the provision of 
     telecommunication services for the Federal Government that 
     was entered into by the Defense Information Technology 
     Contract Organization.

     SEC. 1052. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE 
                   ACADEMIES.

       (a) United States Military Academy.--(1) Chapter 403 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 4358. Research grants: acceptance, application, and 
       use

       ``(a) Acceptance of Competitively Awarded Grants.--The 
     Superintendent of the Academy may accept a research grant 
     that is awarded on a competitive basis by a source referred 
     to in subsection (b) for a research project that is to be 
     carried out by a professor or instructor of the Academy for a 
     scientific, literary, or educational purpose.
       ``(b) Application for Grants.--A professor or instructor of 
     the Academy, together with the Superintendent, may apply for 
     a research grant referred to in subsection (a) from any 
     corporation, fund, foundation, educational institution, or 
     similar entity that is organized and operated primarily for 
     scientific, literary, or educational purposes.
       ``(c) Administration of Grant Proceeds.--The Superintendent 
     shall establish a special account for administering the 
     proceeds of a research grant accepted under subsection (a) 
     and shall use the account for the administration of such 
     proceeds in accordance with applicable regulations and the 
     terms and conditions of the grant.
       ``(d) Related Expenses.--Subject to such limitations as may 
     be provided in appropriations Acts, appropriations available 
     for the Academy may be used to pay expenses incurred by the 
     Academy in pursuit of an award of a research grant authorized 
     to be accepted under subsection (a).
       ``(e) Regulations.--The Secretary of the Army shall 
     prescribe in regulations the requirements, restrictions, and 
     conditions that the Secretary considers appropriate for the

[[Page S7507]]

     exercise and administration of the authority under this 
     section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``4358. Research grants: acceptance, application, and use.''.
       (b) United States Naval Academy.--(1) Chapter 603 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 6977. Research grants: acceptance, application, and 
       use

       ``(a) Acceptance of Competitively Awarded Grants.--The 
     Superintendent of the Academy may accept a research grant 
     that is awarded on a competitive basis by a source referred 
     to in subsection (b) for a research project that is to be 
     carried out by a professor or instructor of the Academy for a 
     scientific, literary, or educational purpose.
       ``(b) Application for Grants.--A professor or instructor of 
     the Academy, together with the Superintendent, may apply for 
     a research grant referred to in subsection (a) from any 
     corporation, fund, foundation, educational institution, or 
     similar entity that is organized and operated primarily for 
     scientific, literary, or educational purposes.
       ``(c) Administration of Grant Proceeds.--The Superintendent 
     shall establish a special account for administering the 
     proceeds of a research grant accepted under subsection (a) 
     and shall use the account for the administration of such 
     proceeds in accordance with applicable regulations and the 
     terms and conditions of the grant.
       ``(d) Related Expenses.--Subject to such limitations as may 
     be provided in appropriations Acts, appropriations available 
     for the Academy may be used to pay expenses incurred by the 
     Academy in pursuit of an award of a research grant authorized 
     to be accepted under subsection (a).
       ``(e) Regulations.--The Secretary of the Navy shall 
     prescribe in regulations the requirements, restrictions, and 
     conditions that the Secretary considers appropriate for the 
     exercise and administration of the authority under this 
     section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``6977. Research grants: acceptance, application, and use.''.
       (c) United States Air Force Academy.--(1) Chapter 903 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 9357. Research grants: acceptance, application, and 
       use

       ``(a) Acceptance of Competitively Awarded Grants.--The 
     Superintendent of the Academy may accept a research grant 
     that is awarded on a competitive basis by a source referred 
     to in subsection (b) for a research project that is to be 
     carried out by a professor or instructor of the Academy for a 
     scientific, literary, or educational purpose.
       ``(b) Application for Grants.--A professor or instructor of 
     the Academy, together with the Superintendent, may apply for 
     a research grant referred to in subsection (a) from any 
     corporation, fund, foundation, educational institution, or 
     similar entity that is organized and operated primarily for 
     scientific, literary, or educational purposes.
       ``(c) Administration of Grant Proceeds.--The Superintendent 
     shall establish a special account for administering the 
     proceeds of a research grant accepted under subsection (a) 
     and shall use the account for the administration of such 
     proceeds in accordance with applicable regulations and the 
     terms and conditions of the grant.
       ``(d) Related Expenses.--Subject to such limitations as may 
     be provided in appropriations Acts, appropriations available 
     for the Academy may be used to pay expenses incurred by the 
     Academy in pursuit of an award of a research grant authorized 
     to be accepted under subsection (a).
       ``(e) Regulations.--The Secretary of the Air Force shall 
     prescribe in regulations the requirements, restrictions, and 
     conditions that the Secretary considers appropriate for the 
     exercise and administration of the authority under this 
     section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``9357. Research grants: acceptance, application, and use.''.

     SEC. 1053. CLARIFICATION AND SIMPLIFICATION OF 
                   RESPONSIBILITIES OF INSPECTORS GENERAL 
                   REGARDING WHISTLEBLOWER PROTECTIONS.

       (a) Roles of Inspectors General of the Armed Forces.--(1) 
     Subsection (c) of section 1034 of title 10, United States 
     Code, is amended--
       (A) by striking out paragraph (1) and inserting in lieu 
     thereof the following:
       ``(1) If a member of the armed forces submits to an 
     Inspector General an allegation that a personnel action 
     prohibited by subsection (b) has been taken (or threatened) 
     against the member with respect to a communication described 
     in paragraph (2), the Inspector General of the Department of 
     Defense or the Inspector General of the armed force concerned 
     shall take the action required under paragraph (3).''; and
       (B) by striking out paragraph (3) and inserting in lieu 
     thereof the following:
       ``(3) The Inspector General receiving an allegation as 
     described in paragraph (1) shall expeditiously determine 
     whether there is sufficient evidence to warrant an 
     investigation of the allegation. Upon determining that an 
     investigation is warranted, the Inspector General shall 
     expeditiously investigate the allegation. In the case of an 
     allegation received by the Inspector General of the 
     Department of Defense, the Inspector General may delegate 
     that duty to the Inspector General of the armed force 
     concerned. Neither an initial determination nor an 
     investigation is required under this paragraph in the case of 
     an allegation made more than 60 days after the date on which 
     the member becomes aware of the personnel action that is the 
     subject of the allegation.
       ``(4) If an Inspector General within a military department 
     receives an allegation covered by this subsection, that 
     Inspector General shall promptly notify the Inspector General 
     of the Department of Defense of the allegation in accordance 
     with regulations prescribed under subsection (h).
       ``(5) The Inspector General of the Department of Defense, 
     or the Inspector General of the Department of Transportation 
     (in the case of a member of the Coast Guard when the Coast 
     Guard is not operating as a service in the Navy), shall 
     ensure that the inspector general conducting the 
     investigation of an allegation under this paragraph is 
     outside the immediate chain of command of both the member 
     submitting the allegation and the individual or individuals 
     alleged to have taken the retaliatory action.''.
       (2) Subsection (d) of such section is amended--
       (A) by striking out ``the Inspector General shall conduct'' 
     and inserting in lieu thereof ``an Inspector General shall 
     conduct''; and
       (B) by adding at the end the following: ``In the case of an 
     allegation received by the Inspector General of the 
     Department of Defense, the Inspector General may delegate 
     that duty to the Inspector General of the armed force 
     concerned.''.
       (b) Mismanagement Covered by Protected Communications.--
     Subsection (c)(2)(B) of such section is amended by striking 
     out ``Mismanagement'' and inserting in lieu thereof ``Gross 
     mismanagement''.
       (c) Simplified Reporting and Notice Requirements.--(1) 
     Paragraph (1) of subsection (e) of such section is amended--
       (A) by striking out ``the Inspector General shall submit a 
     report on'' and inserting in lieu thereof ``the Inspector 
     General conducting the investigation shall provide''; and
       (B) inserting ``shall transmit a copy of the report on the 
     results of the investigation to'' before ``the member of the 
     armed forces''.
       (2) Paragraph (2) of such subsection is amended by adding 
     at the end the following: ``However, the copy need not 
     include summaries of interviews conducted, nor any document 
     acquired, during the course of the investigation. Such items 
     shall be transmitted to the member if the member requests the 
     items, whether before or after the copy of the report is 
     transmitted to the member.''.
       (3) Paragraph (3) of such subsection is amended by striking 
     out ``90 days'' and inserting in lieu thereof ``120 days''.
       (d) Repeal of Post-Investigation Interview Requirement.--
     Subsection (h) of such section is repealed.
       (e) Inspector General Defined.--Subsection (j)(2) of such 
     section is amended--
       (1) by redesignating subparagraph (B) as subparagraph (G) 
     and, in that subparagraph, by striking out ``an officer'' and 
     inserting in lieu thereof ``An officer'';
       (2) by striking out subparagraph (A) and inserting in lieu 
     thereof the following:
       ``(A) The Inspector General of the Department of Defense.
       ``(B) The Inspector General of the Department of 
     Transportation, in the case of a member of the Coast Guard 
     when the Coast Guard is not operating as a service in the 
     Navy.
       ``(C) The Inspector General of the Army, in the case of a 
     member of the Army.
       ``(D) The Naval Inspector General, in the case of a member 
     of the Navy.
       ``(E) The Inspector General of the Air Force, in the case 
     of a member of the Air Force.
       ``(F) The Deputy Naval Inspector General for Marine Corps 
     Matters, in the case of a member of the Marine Corps.''; and
       (3) in the matter preceding subparagraph (A), by striking 
     out ``means--'' and inserting in lieu thereof ``means the 
     following:''.
       (f) Technical and Conforming Amendments.--(1) Subsections 
     (i) and (j) of such section are redesignated as subsections 
     (h) and (i), respectively.
       (2) Subsection (b)(1)(B)(ii) of such section is amended by 
     striking out ``subsection (j))'' and inserting in lieu 
     thereof ``subsection (i)) or any other Inspector General 
     appointed under the Inspector General Act of 1978''.

     SEC. 1054. AMOUNTS RECOVERED FROM CLAIMS AGAINST THIRD 
                   PARTIES FOR LOSS OR DAMAGE TO PERSONAL PROPERTY 
                   SHIPPED OR STORED AT GOVERNMENT EXPENSE.

       (a) In General.--Chapter 163 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2739. Amounts recovered from claims against third 
       parties for loss or damage to personal property shipped or 
       stored at Government expense

       ``(a) Crediting of Collections.--Amounts collected as 
     described in subsection (b) by or for a military department 
     in any fiscal year shall be credited to the appropriation 
     that is available for that fiscal year for the military 
     department for the payment of claims for loss or damage of 
     personal property shipped or stored at Government expense. 
     Amounts so credited shall be merged with the funds in the 
     appropriation and shall be available for

[[Page S7508]]

     the same period and purposes as the funds with which merged.
       ``(b) Collections Covered.--An amount authorized for 
     crediting in accordance with subsection (a) is any amount 
     that a military department collects under sections 3711, 
     3716, 3717 and 3721 of title 31 from a third party for a loss 
     or damage to personal property that occurred during shipment 
     or storage of the property at Government expense and for 
     which the Secretary of the military department paid the owner 
     in settlement of a claim.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2739. Amounts recovered from claims against third parties for loss or 
              damage to personal property shipped or stored at 
              government expense.''.

     SEC. 1055. ELIGIBILITY FOR ATTENDANCE AT DEPARTMENT OF 
                   DEFENSE DOMESTIC DEPENDENT ELEMENTARY AND 
                   SECONDARY SCHOOLS.

       (a) Military Dependents.--Subsection (a) of section 2164 of 
     title 10, United States Code, is amended--
       (1) by designating the first sentence as paragraph (1);
       (2) by designating the second sentence as paragraph (2); 
     and
       (3) by adding at the end of paragraph (2), as so 
     designated, the following: ``The Secretary may also permit a 
     dependent of a member of the armed forces to enroll in such a 
     program if the dependent is residing in such a jurisdiction, 
     whether on or off a military installation, while the member 
     is assigned away from that jurisdiction on a remote or 
     unaccompanied assignment under permanent change of station 
     orders.''.
       (b) Employee Dependents.--Subsection (c)(2) of such section 
     is amended by striking out subparagraph (B) and inserting in 
     lieu thereof the following:
       ``(B) The Secretary may extend the enrollment of a 
     dependent referred to in subparagraph (A) in the program for 
     more than five consecutive school years if the Secretary 
     determines that the dependent is eligible under paragraph 
     (1), space is available in the program, and adequate 
     arrangements are made for reimbursement of the Secretary for 
     the costs to the Secretary of the educational services 
     provided for the dependent. An extension shall be for only 
     one school year, but the Secretary may authorize a successive 
     extension each year for the next school year upon making the 
     determinations required under the preceding sentence for that 
     next school year.''.
       (c) Customs Service Employee Dependents in Puerto Rico.--
     (1) Subsection (c) of such section is further amended by 
     adding at the end the following:
       ``(4)(A) A dependent of a United States Customs Service 
     employee who resides in Puerto Rico but not on a military 
     installation may enroll in an educational program provided by 
     the Secretary pursuant to subsection (a) in Puerto Rico.
       ``(B) Notwithstanding the limitation on duration of 
     enrollment set forth in paragraph (2), a dependent described 
     in subparagraph (A) who is enrolled in an education program 
     described in that subparagraph may be removed from the 
     program only for good cause (as determined by the Secretary). 
     No requirement under that paragraph for reimbursement of the 
     Secretary for the costs of educational services provided for 
     the dependent shall apply with respect to the dependent.
       ``(C) In the event of the death in the line of duty of an 
     employee described in subparagraph (A), a dependent of the 
     employee may remain enrolled in an educational program 
     described in that subparagraph until--
       ``(i) the end of the academic year in which the death 
     occurs; or
       ``(ii) the dependent is removed for good cause (as so 
     determined).''.
       (2) The amendment made by paragraph (1) shall take effect 
     on the date of enactment of this Act and apply to academic 
     years beginning on or after that date.

     SEC. 1056. FEES FOR PROVIDING HISTORICAL INFORMATION TO THE 
                   PUBLIC.

       (a) Army.--(1) Chapter 437 of title 10, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 4595. Army Military History Institute: fee for 
       providing historical information to the public

       ``(a) Authority.--Except as provided in subsection (b), the 
     Secretary of the Army may charge a person a fee for providing 
     the person with information requested by the person that is 
     provided from the United States Army Military History 
     Institute.
       ``(b) Exceptions.--A fee may not be charged under this 
     section--
       ``(1) to a person for information that the person requests 
     to carry out a duty as a member of the armed forces or an 
     officer or employee of the United States; or
       ``(2) for a release of information under section 552 of 
     title 5.
       ``(c) Limitation on Amount of Fee.--The amount of the fee 
     charged under this section for providing information may not 
     exceed the cost of providing the information.
       ``(d) Retention of Fees.--Amounts received under subsection 
     (a) for providing information in any fiscal year shall be 
     credited to the appropriation or appropriations charged the 
     costs of providing information to the public from the United 
     States Army Military History Institute during that fiscal 
     year.
       ``(e) Definitions.--In this section:
       ``(1) The term `United States Army Military History 
     Institute' means the archive for historical records and 
     materials of the Army that the Secretary of the Army 
     designates as the primary archive for such records and 
     materials.
       ``(2) The terms `officer of the United States' and 
     `employee of the United States' have the meanings given those 
     terms in sections 2104 and 2105, respectively, of title 5.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following:

``4595. Army Military History Institute: fee for providing historical 
              information to the public.''.
       (b) Navy.--(1) Chapter 649 of such title 10 is amended by 
     adding at the end the following new section:

     ``Sec. 7582. Naval and Marine Corps Historical Centers: fee 
       for providing historical information to the public

       ``(a) Authority.--Except as provided in subsection (b), the 
     Secretary of the Navy may charge a person a fee for providing 
     the person with information requested by the person that is 
     provided from the United States Naval Historical Center or 
     the Marine Corps Historical Center.
       ``(b) Exceptions.--A fee may not be charged under this 
     section--
       ``(1) to a person for information that the person requests 
     to carry out a duty as a member of the armed forces or an 
     officer or employee of the United States; or
       ``(2) for a release of information under section 552 of 
     title 5.
       ``(c) Limitation on Amount of Fee.--The amount of the fee 
     charged under this section for providing information may not 
     exceed the cost of providing the information.
       ``(d) Retention of Fees.--Amounts received under subsection 
     (a) for providing information from the United States Naval 
     Historical Center or the Marine Corps Historical Center in 
     any fiscal year shall be credited to the appropriation or 
     appropriations charged the costs of providing information to 
     the public from that historical center during that fiscal 
     year.
       ``(e) Definitions.--In this section:
       ``(1) The term `United States Naval Historical Center' 
     means the archive for historical records and materials of the 
     Navy that the Secretary of the Navy designates as the primary 
     archive for such records and materials.
       ``(2) The term `Marine Corps Historical Center' means the 
     archive for historical records and materials of the Marine 
     Corps that the Secretary of the Navy designates as the 
     primary archive for such records and materials.
       ``(3) The terms `officer of the United States' and 
     `employee of the United States' have the meanings given those 
     terms in sections 2104 and 2105, respectively, of title 5.''.
       (2) The heading of such chapter is amended by striking out 
     ``related''.
       (3)(A) The table of sections at the beginning of such 
     chapter is amended by adding at the end the following new 
     item:

``7582. Naval and Marine Corps Historical Centers: fee for providing 
              historical information to the public.''.
       (B) The item relating to such chapter in the tables of 
     chapters at the beginning of subtitle C of title 10, United 
     States Code, and the beginning of part IV of such subtitle is 
     amended by striking out ``Related''.
       (c) Air Force.--(1) Chapter 937 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 9594. Air Force Military History Institute: fee for 
       providing historical information to the public

       ``(a) Authority.--Except as provided in subsection (b), the 
     Secretary of the Air Force may charge a person a fee for 
     providing the person with information requested by the person 
     that is provided from the United States Air Force Military 
     History Institute.
       ``(b) Exceptions.--A fee may not be charged under this 
     section--
       ``(1) to a person for information that the person requests 
     to carry out a duty as a member of the armed forces or an 
     officer or employee of the United States; or
       ``(2) for a release of information under section 552 of 
     title 5.
       ``(c) Limitation on Amount of Fee.--The amount of the fee 
     charged under this section for providing information may not 
     exceed the cost of providing the information.
       ``(d) Retention of Fees.--Amounts received under subsection 
     (a) for providing information in any fiscal year shall be 
     credited to the appropriation or appropriations charged the 
     costs of providing information to the public from the United 
     States Air Force Military History Institute during that 
     fiscal year.
       ``(e) Definitions.--In this section:
       ``(1) The term `United States Air Force Military History 
     Institute' means the archive for historical records and 
     materials of the Air Force that the Secretary of the Air 
     Force designates as the primary archive for such records and 
     materials.
       ``(2) The terms `officer of the United States' and 
     `employee of the United States' have the meanings given those 
     terms in sections 2104 and 2105, respectively, of title 5.''.
       (2) The table of sections at the beginning of such chapter 
     937 is amended by adding at the end the following new item:

``9594. Air Force Military History Institute: fee for providing 
              historical information to the public.''.

[[Page S7509]]

     SEC. 1057. PERIODIC INSPECTION OF THE ARMED FORCES RETIREMENT 
                   HOME.

       (a) Inspection by Inspectors General of the Armed Forces.--
     Section 1518 of the Armed Forces Retirement Home Act of 1991 
     (24 U.S.C. 418) is amended to read as follows:

     ``SEC. 1518. INSPECTION OF RETIREMENT HOME.

       ``(a) Triennial Inspection.--Every three years the 
     Inspector General of an armed force shall inspect the 
     Retirement Home, including the records of the Retirement 
     Home.
       ``(b) Alternating Duty Among Inspectors General.--The duty 
     to inspect the Retirement Home shall alternate among the 
     Inspector General of the Army, the Naval Inspector General, 
     and the Inspector General of the Air Force on such schedule 
     as the Secretary of Defense shall direct.
       ``(c) Reports.--Not later than 45 days after completing an 
     inspection under subsection (a), the Inspector General 
     carrying out the inspection shall submit to the Retirement 
     Home Board, the Secretary of Defense, and Congress a report 
     describing the results of the inspection and containing such 
     recommendations as the Inspector General considers 
     appropriate.''.
       (b) First Inspection.--The first inspection under section 
     1518 of the Armed Forces Retirement Home Act of 1991, as 
     amended by subsection (a), shall be carried out during fiscal 
     year 1999.

     SEC. 1058. TRANSFER OF F-4 PHANTOM II AIRCRAFT TO FOUNDATION.

       (a) Authority.--The Secretary of the Air Force may convey, 
     without consideration to the Collings Foundation, Stow, 
     Massachusetts (in this section referred to as the 
     ``foundation''), all right, title, and interest of the United 
     States in and to one surplus F-4 Phantom II aircraft. The 
     conveyance shall be made by means of a conditional deed of 
     gift.
       (b) Condition of Aircraft.--The Secretary may not convey 
     ownership of the aircraft under subsection (a) until the 
     Secretary determines that the foundation has altered the 
     aircraft in such manner as the Secretary determines necessary 
     to ensure that the aircraft does not have any capability for 
     use as a platform for launching or releasing munitions or any 
     other combat capability that it was designed to have. The 
     Secretary is not required to repair or alter the condition of 
     the aircraft before conveying ownership of the aircraft.
       (c) Reverter Upon Breach of Conditions.--The Secretary 
     shall include in the instrument of conveyance of the 
     aircraft--
       (1) a condition that the foundation not convey any 
     ownership interest in, or transfer possession of, the 
     aircraft to any other party without the prior approval of the 
     Secretary of the Air Force;
       (2) a condition that the operation and maintenance of the 
     aircraft comply with all applicable limitations and 
     maintenance requirements imposed by the Administrator of the 
     Federal Aviation Administration; and
       (3) a condition that if the Secretary of the Air Force 
     determines at any time that the foundation has conveyed an 
     ownership interest in, or transferred possession of, the 
     aircraft to any other party without the prior approval of the 
     Secretary, or has failed to comply with the condition set 
     forth in paragraph (2), all right, title, and interest in and 
     to the aircraft, including any repair or alteration of the 
     aircraft, shall revert to the United States, and the United 
     States shall have the right of immediate possession of the 
     aircraft.
       (d) Conveyance at No Cost to the United States.--The 
     conveyance of an aircraft authorized by this section shall be 
     made at no cost to the United States. Any costs associated 
     with such conveyance, costs of determining compliance with 
     subsection (b), and costs of operation and maintenance of the 
     aircraft conveyed shall be borne by the foundation.
       (e) Additional Terms and Conditions.--The Secretary of the 
     Air Force may require such additional terms and conditions in 
     connection with the conveyance under this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
       (f) Clarification of Liability.--Notwithstanding any other 
     provision of law, upon the conveyance of ownership of the F-4 
     Phantom II aircraft to the foundation under subsection (a), 
     the United States shall not be liable for any death, injury, 
     loss, or damage that results from any use of that aircraft by 
     any person other than the United States.

     SEC. 1059. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL 
                   WAR RISK INSURANCE REQUESTED BY THE SECRETARY 
                   OF DEFENSE.

       Section 1205(b) of the Merchant Marine Act of 1936 (46 
     U.S.C. App. 1285(b)) is amended by adding at the end the 
     following: ``The signature of the President (or of an 
     official designated by the President) on the agreement shall 
     be treated as an expression of the approval required under 
     section 1202(a) to provide the insurance.''.

     SEC. 1060. COMMENDATION AND MEMORIALIZATION OF THE UNITED 
                   STATES NAVY ASIATIC FLEET.

       (a) Findings.--Congress makes the following findings:
       (1) The United States established the Asiatic Fleet of the 
     Navy in 1910 to protect American nationals, policies, and 
     possessions in the Far East.
       (2) The sailors and Marines of the Asiatic Fleet ensured 
     the safety of United States citizens and foreign nationals, 
     and provided humanitarian assistance, in that region during 
     the Chinese civil war, the Yangtze Flood of 1931, and the 
     outbreak of Sino-Japanese hostilities.
       (3) In 1940, due to deteriorating political relations and 
     increasing tensions between the United States and Japan, a 
     reinforced Asiatic Fleet began concentrating on the defense 
     of the Philippines and engaged in extensive training to 
     ensure maximum operational readiness for any eventuality.
       (4) Following the declaration of war against Japan, the 
     warships, submarines, and aircraft of the Asiatic Fleet 
     singly or in task forces courageously fought many naval 
     battles against a superior Japanese armada.
       (5) The Asiatic Fleet directly suffered the loss of 22 
     ships, 1,826 men killed or missing in action, and 518 men 
     captured and imprisoned under the worst of conditions with 
     many of them dying while held as prisoners of war.
       (b) Commendation.--Congress--
       (1) commends the personnel who served in the Asiatic Fleet 
     of the United States Navy during the period 1910 to 1942; and
       (2) honors those who gave their lives in the line of duty 
     while serving in the Asiatic Fleet.
       (c) United States Navy Asiatic Fleet Memorial Day.--The 
     President is authorized and requested to issue a proclamation 
     designating March 1, 1999 as ``United States Navy Asiatic 
     Fleet Memorial Day'' and calling upon the people of the 
     United States to observe United States Navy Asiatic Fleet 
     Memorial Day with appropriate programs, ceremonies, and 
     activities.

     SEC. 1061. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE 
                   KOREAN WAR.

       (a) Reference to Korean War.--Section 1083 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 1918; 10 U.S.C. 113 note) is amended--
       (1) in the section heading, by striking out ``korean 
     conflict'' and inserting in lieu thereof ``korean war'';
       (2) by striking out ``Korean conflict'' each place it 
     appears and inserting in lieu thereof ``Korean War''; and
       (3) in subsections (c) and (d)(1), by striking out ``Korean 
     Conflict'' and inserting in lieu thereof ``Korean War''.
       (b) Limitation on Expenditures.--Subsection (f) of such 
     section is amended to read as follows:
       ``(f) Limitation on Expenditures.--The total amount 
     expended for the commemorative program for fiscal years 1998 
     through 2004 by the Department of Defense 50th Anniversary of 
     the Korean War Commemorative Committee established by the 
     Secretary of Defense may not exceed $10,000,000.''.

     SEC. 1062. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.

       (a) Finding.--Congress finds that the report submitted to 
     Congress by the Secretary of Defense on April 2, 1998, 
     regarding the reallocation of the frequency spectrum used or 
     dedicated to the Department of Defense and the intelligence 
     community, does not include a discussion of the costs to the 
     Department of Defense that are associated with past and 
     potential future reallocations of the frequency spectrum, 
     although such a discussion was to be included in the report 
     as directed in connection with the enactment of the National 
     Defense Authorization Act for Fiscal Year 1998.
       (b) Additional Report.--The Secretary of Defense shall, not 
     later than October 31, 1998, submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report that discusses the 
     costs referred to in subsection (a).
       (c) Relocation of Federal Frequencies.--Section 113(g)(1) 
     of the National Telecommunications and Information 
     Administration Organization Act (47 U.S.C. 923(g)(1)) is 
     amended--
       (1) by striking out ``(1) In general.--In order'' and 
     inserting in lieu thereof the following:
       ``(1) In general.--
       ``(A) Authority of federal entities to accept 
     compensation.--In order'';
       (2) in subparagraph (A), as so designated, by striking out 
     the second, third, and fourth sentences and inserting in lieu 
     thereof the following: ``Any such Federal entity which 
     proposes to so relocate shall notify the NTIA, which in turn 
     shall notify the Commission, before the auction concerned of 
     the marginal costs anticipated to be associated with such 
     relocation or with modifications necessary to accommodate 
     prospective licensees. The Commission in turn shall notify 
     potential bidders of the estimated relocation or modification 
     costs based on the geographic area covered by the proposed 
     licenses before the auction; and
       (3) by adding at the end the following:
       ``(B) Requirement to compensate federal entities.--Any 
     person on whose behalf a Federal entity incurs costs under 
     subparagraph (A) shall compensate the Federal entity in 
     advance for such costs. Such compensation may take the form 
     of a cash payment or in-kind compensation.
       ``(C) Disposition of payments.--
       ``(i) Payment by electronic funds transfer.--A person 
     making a cash payment under this paragraph shall make the 
     cash payment by depositing the amount of the payment by 
     electronic funds transfer in the account of the Federal 
     entity concerned in the Treasury of the United States or in 
     another account as authorized by law.
       ``(ii) Availability.--Subject to the provisions of 
     authorization Acts and appropriations Acts, amounts deposited 
     under this subparagraph shall be available to the Federal 
     entity concerned to pay directly the costs of relocation 
     under this paragraph, to

[[Page S7510]]

     repay or make advances to appropriations or funds which do or 
     will initially bear all or part of such costs, or to refund 
     excess sums when necessary.
       ``(D) Application to certain other relocations.--The 
     provisions of this paragraph also apply to any Federal entity 
     that operates a Federal Government station assigned to used 
     electromagnetic spectrum identified for reallocation under 
     subsection (a) if before August 5, 1997, the Commission has 
     not identified that spectrum for service or assigned licenses 
     or otherwise authorized service for that spectrum.
       ``(E) Implementation procedures.--The NTIA and the 
     Commission shall develop procedures for the implementation of 
     this paragraph, which procedures shall include a process for 
     resolving any differences that arise between the Federal 
     Government and commercial licensees regarding estimates of 
     relocation or modification costs under this paragraph.
       ``(F) Inapplicability to certain relocations.--With the 
     exception of spectrum located at 1710-1755 Megahertz, the 
     provisions of this paragraph shall not apply to Federal 
     spectrum identified for reallocation in the first 
     reallocation report submitted to the President and Congress 
     under subsection (a).''.
       (d) Reports on Costs of Relocations.--The head of each 
     department or agency of the Federal Government shall include 
     in the annual budget submission of such department or agency 
     to the Director of the Office of Management and Budget a 
     report assessing the costs to be incurred by such department 
     or agency as a result of any frequency relocations of such 
     department or agency that are anticipated under section 113 
     of the National Telecommunications Information Administration 
     Organization Act (47 U.S.C. 923) as of the date of such 
     report.

     SEC. 1063. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) The item relating to section 484 in the table of 
     sections at the beginning of chapter 23 is amended to read as 
     follows:

``484. Annual report on aircraft inventory.''.
       (2) Section 517(a) is amended by striking out ``Except as 
     provided in section 307 of title 37, the'' and inserting in 
     lieu thereof ``The''.
       (3) The item relating to section 2302c in the table of 
     sections at the beginning of chapter 137 is amended to read 
     as follows:

``2302c. Implementation of electronic commerce capability.''.
       (4) The table of subchapters at the beginning of chapter 
     148 is amended by striking out ``2491'' in the item relating 
     to subchapter I and inserting in lieu thereof ``2500''.
       (5) Section 7045(c) is amended by striking out ``the'' 
     after ``are subject to''.
       (6) Section 7572(b) is repealed.
       (7) Section 12683(b)(2) is amended by striking out ``; or'' 
     at the end and inserting in lieu thereof a period.
       (b) Public Law 105-85.--Effective as of November 18, 1997, 
     and as if included therein as enacted, the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85) is 
     amended as follows:
       (1) Section 1006(a) (111 Stat. 1869) is amended by striking 
     out ``or'' in the quoted matter and inserting in lieu thereof 
     ``and''.
       (2) Section 3133(b)(3) (111 Stat. 2036) is amended by 
     striking out ``III'' and inserting in lieu thereof ``XIV''.
       (c) Other Acts.--
       (1) Section 18(c)(1) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 416(c)(1)) is amended by striking out 
     the period at the end of subparagraph (A) and inserting in 
     lieu thereof a semicolon.
       (2) Section 3(c)(2) of Public Law 101-533 (22 U.S.C. 
     3142(c)(2)) is amended by striking out ``included in the most 
     recent plan submitted to the Congress under section 2506 of 
     title 10'' and inserting in lieu thereof ``identified in the 
     most recent assessment prepared under section 2505 of title 
     10''.
       (d) Coordination With Other Amendments.--For purposes of 
     applying amendments made by provisions of this Act other than 
     provisions of this section, this section shall be treated as 
     having been enacted immediately before the other provisions 
     of this Act.

     SEC. 1064. EXTENSION AND REAUTHORIZATION OF DEFENSE 
                   PRODUCTION ACT OF 1950.

       (a) Extension of Termination Date.--Section 717(a) of the 
     Defense Production Act of 1950 (50 U.S.C. App. 2166(a)) is 
     amended by striking ``September 30, 1998'' and inserting 
     ``September 30, 1999''.
       (b) Extension of Authorization.--Section 711(b) of the 
     Defense Production Act of 1950 (50 U.S.C. App. 2161(b)) is 
     amended by striking ``and 1998'' and inserting ``1998, and 
     1999''.

     SEC. 1065. BUDGETING FOR CONTINUED PARTICIPATION OF UNITED 
                   STATES FORCES IN NATO OPERATIONS IN BOSNIA AND 
                   HERZEGOVINA.

       (a) Findings.--Congress makes the following findings:
       (1) Funding levels in the Department of Defense budget have 
     not been sufficient to pay for the deployment of United 
     States ground combat forces in Bosnia and Herzegovina that 
     began in fiscal year 1996.
       (2) The Department of Defense has used funds from the 
     operation and maintenance accounts of the Armed Forces to pay 
     for the operations because the funding levels included in the 
     defense budgets for fiscal years 1996 and 1997 have not been 
     adequate to maintain operations in Bosnia and Herzegovina.
       (3) Funds necessary to continue United States participation 
     in the NATO operations in Bosnia and Herzegovina, and to 
     replace operation and maintenance funds used for the 
     operations, have been requested by the President as 
     supplemental appropriations in fiscal years 1996 and 1997. 
     The Department of Defense has also proposed to reprogram 
     previously appropriated funds to make up the shortfall for 
     continued United States operations in Bosnia and Herzegovina.
       (4) In February 1998, the President certified to Congress 
     that the continued presence of United States forces in Bosnia 
     and Herzegovina after June 30, 1998, was necessary in order 
     to meet national security interests of the United States.
       (5) The discretionary spending limit established for the 
     defense category for fiscal year 1998 in the Balanced Budget 
     and Emergency Deficit Control Act of 1985 does not take into 
     account the continued deployment of United States forces in 
     Bosnia and Herzegovina after June 30, 1998. Therefore, the 
     President requested emergency supplemental appropriations for 
     the Bosnia and Herzegovina mission through September 30, 
     1998.
       (6) Amounts for operations in Bosnia and Herzegovina were 
     not included in the original budget proposed by the President 
     for the Department of Defense for fiscal year 1999.
       (7) The President requested $1,858,600,000 in emergency 
     appropriations in his March 4, 1998 amendment to the fiscal 
     year 1999 budget to cover the shortfall in funding in the 
     fiscal year 1999 for the costs of extending the mission in 
     Bosnia.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the President should include in the budget for the 
     Department of Defense that the President submits to Congress 
     under section 1105(a) of title 31, United States Code, for 
     each fiscal year sufficient amounts to pay for any proposed 
     continuation of the participation of United States forces in 
     NATO operations in Bosnia and Herzegovina for that fiscal 
     year; and
       (2) amounts included in the budget for that purpose should 
     not be transferred from amounts that would otherwise be 
     proposed in the budget of any of the Armed Forces in 
     accordance with the future-years defense program related to 
     that budget, or any other agency of the Executive Branch, 
     but, instead, should be an overall increase in the budget for 
     the Department of Defense.

     SEC. 1066. NATO PARTICIPATION IN THE PERFORMANCE OF PUBLIC 
                   SECURITY FUNCTIONS OF CIVILIAN AUTHORITIES IN 
                   BOSNIA AND HERZEGOVINA.

       (a) Findings.--Congress makes the following findings:
       (1) The North Atlantic Treaty Organization (NATO) has 
     approved the creation of a multi-national specialized unit of 
     gendarmes- or para-military police composed of European 
     security forces to help promote public security in Bosnia and 
     Herzegovina as a part of the post-June 1998 mission for the 
     Stabilization Force (SFOR) authorized under the United 
     Nations Security Council Resolution 1088 (December 12, 1996).
       (2) On at least four occasions, beginning in July 1997, the 
     Stabilization Force (SFOR) has been involved, pursuant to 
     military annex 1(A) of the Dayton Agreement, in carrying out 
     missions for the specific purpose of detaining war criminals, 
     and on at least one of those occasions United States forces 
     were directly involved in carrying out the mission.
       (b) Sense of Congress.--It is the sense of Congress that 
     United States forces should not serve as civil police in 
     Bosnia and Herzegovina.
       (c) Requirement for Report.--The President shall submit to 
     Congress, not later than October 1, 1998, a report on the 
     status of the NATO force of gendarmes or paramilitary police 
     referred to in subsection (a)(1), including the mission of 
     the force, the composition of the force, and the extent, if 
     any, to which members of the Armed Forces of the United 
     States are participating (or are to participate) in the 
     force.

     SEC. 1067. PILOT PROGRAM FOR REVITALIZING THE LABORATORIES 
                   AND TEST AND EVALUATION CENTERS OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Findings.--Congress makes the following findings:
       (1) Officials of the Department of Defense are critically 
     dependent on the science and technology laboratories and test 
     and evaluation centers, of the department--
       (A) to exploit commercial technology for unique military 
     purposes;
       (B) to develop advanced technology in precise areas;
       (C) to provide the officials with objective advice and 
     counsel on science and technology matters; and
       (D) to lead the decisionmaking that identifies the most 
     cost-effective procurements of military equipment and 
     services.
       (2) The laboratories and test and evaluation centers are 
     facing a number of challenges that, if not overcome, could 
     limit the productivity and self-sustainability of the 
     laboratories and centers, including--
       (A) the declining funding provided for science and 
     technology in the technology base program of the Department 
     of Defense;
       (B) difficulties experienced in recruiting, retaining, and 
     motivating high-quality personnel; and
       (C) the complex web of policies and regulatory constraints 
     that restrict authority of

[[Page S7511]]

     managers to operate the laboratories and centers in a 
     businesslike fashion.
       (3) Congress has provided tools to deal with the changing 
     nature of technological development in the defense sector by 
     encouraging closer cooperation with industry and university 
     research and by authorizing demonstrations of alternative 
     personnel systems.
       (4) A number of laboratories and test and evaluation 
     centers have addressed the challenges and are employing a 
     variety of innovative methods, such as the so-called 
     ``Federated Lab Concept'' undertaken at the Army Research 
     Laboratory, to maintain the high quality of the technical 
     program, to provide a challenging work environment for 
     researchers, and to meet the high cost demands of maintaining 
     facilities that are equal or superior in quality to 
     comparable facilities anywhere in the world.
       (b) Commendation.--Congress commends the Secretary of 
     Defense for the progress made by the science and technology 
     laboratories and test and evaluation centers to achieve the 
     results described in subsection (a)(4) and encourages the 
     Secretary to take the actions necessary to ensure continued 
     progress for the laboratories and test and evaluation centers 
     in developing cooperative relationships with universities and 
     other private sector entities for the performance of research 
     and development functions.
       (c) Pilot Program.--(1) In conjunction with the plan for 
     restructuring and revitalizing the science and technology 
     laboratories and test and evaluation centers of the 
     Department of Defense that is required by section 906 of this 
     Act, the Secretary of Defense may carry out a pilot program 
     to demonstrate improved cooperative relationships with 
     universities and other private sector entities for the 
     performance of research and development functions.
       (2) Under the pilot program, the Secretary of Defense shall 
     provide the director of one science and technology 
     laboratory, and the director of one test and evaluation 
     center, of each military department with authority for the 
     following:
       (A) To explore innovative methods for quickly, efficiently, 
     and fairly entering into cooperative relationships with 
     universities and other private sector entities with respect 
     to the performance of research and development functions.
       (B) To waive any restrictions on the demonstration and 
     implementation of such methods that are not required by law.
       (C) To develop or expand innovative methods of operation 
     that provide more defense research for each dollar of cost, 
     including to carry out such initiatives as focusing on the 
     performance of core functions and adopting more business-like 
     practices.
       (3) In selecting the laboratories and centers for 
     participation in the pilot program, the Secretary shall 
     consider laboratories and centers where innovative management 
     techniques have been demonstrated, particularly as documented 
     under sections 1115 through 1119 of title 31, United States 
     Code, relating to Government agency performance and results.
       (4) The Secretary may carry out the pilot program at each 
     selected laboratory and center for a period of three years 
     beginning not later than March 1, 1999.
       (d) Reports.--(1) Not later than March 1, 1999, the 
     Secretary of Defense shall submit a report on the 
     implementation of the pilot program to Congress. The report 
     shall include the following:
       (A) Each laboratory and center selected for the pilot 
     program.
       (B) To the extent possible, a description of the innovative 
     concepts that are to be tested at each laboratory or center.
       (C) The criteria to be used for measuring the success of 
     each concept to be tested.
       (2) Promptly after the expiration of the period for 
     participation of a laboratory or center in the pilot program, 
     the Secretary of Defense shall submit to Congress a final 
     report on the participation of the laboratory or center in 
     the pilot program. The report shall contain the following:
       (A) A description of the concepts tested.
       (B) The results of the testing.
       (C) The lessons learned.
       (D) Any proposal for legislation that the Secretary 
     recommends on the basis of the experience at the laboratory 
     or center under the pilot program.

     SEC. 1068. SENSE OF CONGRESS REGARDING THE HEROISM, 
                   SACRIFICE, AND SERVICE OF FORMER SOUTH 
                   VIETNAMESE COMMANDOS IN CONNECTION WITH UNITED 
                   STATES ARMED FORCES DURING THE VIETNAM 
                   CONFLICT.

       (a) Findings.--Congress makes the following findings:
       (1) South Vietnamese commandos were recruited by the United 
     States as part of OPLAN 34A or its predecessor or OPLAN 35 
     from 1961 to 1970.
       (2) The commandos conducted covert operations in North 
     Vietnam during the Vietnam conflict.
       (3) Many of the commandos were captured and imprisoned by 
     North Vietnamese forces, some for as long as 20 years.
       (4) The commandos served and fought proudly during the 
     Vietnam conflict.
       (5) Many of the commandos lost their lives serving in 
     operations conducted by the United States during the Vietnam 
     conflict.
       (6) Many of the Vietnamese commandos now reside in the 
     United States.
       (b) Sense of Congress--Congress recognizes and honors the 
     former South Vietnamese commandos for their heroism, 
     sacrifice, and service in connection with United States armed 
     forces during the Vietnam conflict.

     SEC. 1069. SENSE OF THE SENATE REGARDING DECLASSIFICATION OF 
                   CLASSIFIED INFORMATION OF THE DEPARTMENT OF 
                   DEFENSE AND THE DEPARTMENT OF ENERGY.

       It is the sense of the Senate that the Secretary of Defense 
     and the Secretary of Energy should submit to Congress a 
     request for funds in fiscal year 2000 for activities relating 
     to the declassification of information under the jurisdiction 
     of such Secretaries in order to fulfill the obligations and 
     commitments of such Secretaries under Executive Order No. 
     12958 and the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
     seq.) and to the stakeholders.

     SEC. 1070. RUSSIAN NONSTRATEGIC NUCLEAR WEAPONS.

       (a) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the 7,000 to 12,000 or more nonstrategic (or 
     ``tactical'') nuclear weapons estimated by the United States 
     Strategic Command to be in the Russian arsenal may present 
     the greatest threat of sale or theft of a nuclear warhead in 
     the world today;
       (2) as the number of deployed strategic warheads in the 
     Russian and United States arsenals declines to just a few 
     thousand under the START accords, Russia's vast superiority 
     in tactical nuclear warheads--many of which have yields 
     equivalent to strategic nuclear weapons--could become 
     strategically destabilizing;
       (3) while the United States has unilaterally reduced its 
     inventory of tactical nuclear weapons by nearly 90 percent 
     since the end of the Cold War, Russia is behind schedule in 
     implementing the steep tactical nuclear arms reductions 
     pledged by former Soviet President Gorbachev in 1991 and 
     Russian President Yeltsin in 1992, perpetuating the dangers 
     from Russia's tactical nuclear stockpile; and
       (4) the President of the United States should call on the 
     Russian Federation to expedite reduction of its tactical 
     nuclear arsenal in accordance with the promises made in 1991 
     and 1992.
       (b) Report.--Not later than March 15, 1999, the Secretary 
     of Defense shall submit to the Congress a report on Russia's 
     nonstrategic nuclear weapons, including--
       (1) estimates regarding the current numbers, types, yields, 
     viability, and locations of such warheads;
       (2) an assessment of the strategic implications of the 
     Russian Federation's nonstrategic arsenal, including the 
     potential use of such warheads in a strategic role or the use 
     of their components in strategic nuclear systems;
       (3) an assessment of the extent of the current threat of 
     theft, sale, or unauthorized use of such warheads, including 
     an analysis of Russian command and control as it concerns the 
     use of tactical nuclear warheads; and
       (4) a summary of past, current, and planned efforts to work 
     cooperatively with the Russian Federation to account for, 
     secure, and reduce Russia's stockpile of tactical nuclear 
     warheads and associated fissile material.
       (c) Views.--This report shall include the views of the 
     Director of Central Intelligence and the Commander in Chief 
     of the United States Strategic Command.

     SEC. 1071. SENSE OF SENATE ON NUCLEAR TESTS IN SOUTH ASIA.

       (a) Findings.--The Senate finds that--
       (1) on May 11 and 13, 1998, the Government of India 
     conducted a series of underground nuclear tests;
       (2) on May 28 and 30, 1998, the Government of Pakistan 
     conducted a series of underground nuclear tests;
       (3) although not recognized or accepted as such by the 
     United Nations Security Council, India and Pakistan have 
     declared themselves nuclear weapon states;
       (4) India and Pakistan have conducted extensive nuclear 
     weapons research over several decades, resulting in the 
     development of nuclear capabilities and the potential for the 
     attainment of nuclear arsenals and the dangerous 
     proliferation of nuclear weaponry;
       (5) India and Pakistan have refused to enter into 
     internationally recognized nuclear non-proliferation 
     agreements, including the Comprehensive Test Ban Treaty, the 
     Treaty on the Non-Proliferation of Nuclear Weapons, and full-
     scope safeguards agreements with the International Atomic 
     Energy Agency;
       (6) India and Pakistan, which have been at war with each 
     other 3 times in the past 50 years, have urgent bilateral 
     conflicts, most notably over the disputed territory of 
     Kashmir;
       (7) the testing of nuclear weapons by India and Pakistan 
     has created grave and serious tensions on the Indian 
     subcontinent; and
       (8) the United States response to India and Pakistan's 
     nuclear tests has included the imposition of wide-ranging 
     sanctions as called for under the Arms Export Control Act and 
     the Nuclear Proliferation Prevention Act of 1994.
       (b) Sense of Senate.--The Senate--
       (1) strongly condemns the decisions by the governments of 
     India and Pakistan to conduct nuclear tests in May 1998;
       (2) supports the President's decision to carry out the 
     provisions of the Nuclear Proliferation Prevention Act of 
     1994 with respect to India and Pakistan and invoke all 
     sanctions in that Act;
       (3) calls upon members of the international community to 
     impose similar sanctions against India and Pakistan to those 
     imposed by the United States;

[[Page S7512]]

       (4) calls for the governments of India and Pakistan to 
     commit not to conduct any additional nuclear tests;
       (5) urges the governments of India and Pakistan to take 
     immediate steps, bilaterally and under the auspices of the 
     United Nations, to reduce tensions between them;
       (6) urges India and Pakistan to engage in high-level 
     dialogue aimed at reducing the likelihood of armed conflict, 
     enacting confidence and security building measures, and 
     resolving areas of dispute;
       (7) commends all nations to take steps which will reduce 
     tensions in South Asia, including appropriate measures to 
     prevent the transfer of technology that could further 
     exacerbate the arms race in South Asia, and thus avoid 
     further deterioration of security there;
       (8) calls upon the President to seek a diplomatic solution 
     between the governments of India and Pakistan to promote 
     peace and stability in South Asia and resolve the current 
     impasse;
       (9) encourages United States leadership in assisting the 
     governments of India and Pakistan to resolve their 50-year 
     conflict over the disputed territory in Kashmir;
       (10) urges India and Pakistan to take immediate, binding, 
     and verifiable steps to roll back their nuclear programs and 
     come into compliance with internationally accepted norms 
     regarding the proliferation of weapons of mass destruction; 
     and
       (11) urges the United States to reevaluate its bilateral 
     relationship with India and Pakistan, in light of the new 
     regional security realities in South Asia, with the goal of 
     preventing further nuclear and ballistic missile 
     proliferation, diffusing long-standing regional rivalries 
     between India and Pakistan, and securing commitments from 
     them which, if carried out, could result in a calibrated 
     lifting of United States sanctions imposed under the Arms 
     Export Control Act and the Nuclear Proliferation Prevention 
     Act of 1994.

     SEC. 1072. SENSE OF CONGRESS REGARDING CONTINUED 
                   PARTICIPATION OF UNITED STATES FORCES IN 
                   OPERATIONS IN BOSNIA AND HERZEGOVINA.

       (a) Findings.--Congress makes the following findings:
       (1) The contributions of the people of the United States 
     and other nations have, in large measure, resulted in the 
     suspension of fighting and alleviated the suffering of the 
     people of Bosnia and Herzegovina since December 1995.
       (2) the people of the United States have expended 
     approximately $9,500,000,000 in tax dollars between 1992 and 
     mid-1998 just in support of the United States military 
     operations in Bosnia to achieve those results.
       (3) Efforts to restore the economy and political structure 
     in Bosnia and Herzegovina have achieved some success in 
     accordance with the Dayton Agreement.
       (4) In February 1998, the President certified to Congress 
     that the continued presence of United States forces in Bosnia 
     and Herzegovina after June 30, 1998, was necessary in order 
     to meet national security interests of the United States.
       (5) There is, however, no accurate estimate of the time 
     needed to accomplish the civilian implementation tasks 
     outlined in the Dayton Agreement.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) United States ground combat forces should not remain in 
     Bosnia and Herzegovina indefinitely in view of the world-wide 
     commitments of the Armed Forces of the United States;
       (2) the President should work with NATO allies and the 
     other nations whose military forces are participating in the 
     NATO-led Stabilization Force to withdraw United States ground 
     combat forces from Bosnia and Herzegovina within a reasonable 
     period of time, consistent with the safety of those forces 
     and the accomplishment of the Stabilization Force's military 
     tasks;
       (3) a NATO-led force without the participation of United 
     States ground combat forces in Bosnia and Herzegovina might 
     be suitable for a follow-on force for Bosnia and Herzegovina 
     if the European Security and Defense Identity is not 
     sufficiently developed or is otherwise considered 
     inappropriate for such a mission;
       (4) the United States may decide to provide appropriate 
     support to a Western European Union-led or NATO-led follow-on 
     force for Bosnia and Herzegovina, including command and 
     control, intelligence, logistics, and, if necessary, a ready 
     reserve force in the region;
       (5) the President should inform the European NATO allies of 
     this expression of the sense of Congress and should strongly 
     urge them to undertake preparations for establishing a 
     Western European Union-led or a NATO-led force as a follow-on 
     force to the NATO-led Stabilization Force if needed to 
     maintain peace and stability in Bosnia and Herzegovina; and
       (6) the President should consult closely with the 
     congressional leadership and the congressional defense 
     committees with respect to the progress being made toward 
     achieving a sustainable peace in Bosnia and Herzegovina and 
     the progress being made toward a reduction and ultimate 
     withdrawal of United States ground combat forces from Bosnia 
     and Herzegovina.
       (c) One-Time Reports.--The President shall submit to 
     Congress the following reports:
       (1) Not later than September 30, 1998, a report containing 
     a discussion of the likely impact on the security situation 
     in Bosnia and Herzegovina and on the prospects for 
     establishing self-sustaining peace and stable local 
     government there that would result from a phased reduction in 
     the number of United States military personnel stationed in 
     Bosnia and Herzegovina under the following alternatives:
       (A) A phased reduction to 5,000 by February 2, 1999, to 
     3,500 by June 30, 1999, and to 2,500 by February 2, 2000.
       (B) A phased reduction by February 2, 2000, to the number 
     of personnel that is approximately equal to the mean average 
     of--
       (i) the number of military personnel of the United Kingdom 
     that are stationed in Bosnia and Herzegovina on that date;
       (ii) the number of military personnel of Germany that are 
     stationed there on that date;
       (iii) the number of military personnel of France that are 
     stationed there on that date; and
       (iv) the number of military personnel of Italy that are 
     stationed there on that date.
       (2) Not later than October 1, 1998, a report on the status 
     of the NATO force of gendarmes or paramilitary police 
     referred to in subsection (a)(1), including the mission of 
     the force, the composition of the force, and the extent, if 
     any, to which members of the Armed Forces of the United 
     States are participating (or are to participate) in the 
     force.
       (d) Report To Accompany Each Request for Funding.--(1) Each 
     time that the President submits to Congress a proposal for 
     funding continued operations of United States forces in 
     Bosnia and Herzegovina, the President shall submit to 
     Congress a report on the missions of United States forces 
     there. The first report shall be submitted at the same time 
     that the President submits the budget for fiscal year 2000 to 
     Congress under section 1105(a) of title 31, United States 
     Code.
       (2) Each report under paragraph (1) shall include the 
     following:
       (A) The performance objectives and schedule for the 
     implementation of the Dayton Agreement, including--
       (i) the specific objectives for the reestablishment of a 
     self-sustaining peace and a stable local government in Bosnia 
     and Herzegovina, taking into account (I) each of the areas of 
     implementation required by the Dayton Agreement, as well as 
     other areas that are not covered specifically in the Dayton 
     Agreement but are essential for reestablishing such a peace 
     and local government and to permitting an orderly withdrawal 
     of the international peace implementation force from Bosnia 
     and Herzegovina, and (II) the benchmarks reported in the 
     latest semiannual report submitted under section 7(b)(2) of 
     the 1998 Supplemental Appropriations and Rescissions Act 
     (revised as necessary to be current as of the date of the 
     report submitted under this subsection); and
       (ii) the schedule, specified by fiscal year, for achieving 
     the objectives.
       (B) The military and non-military missions that the 
     President has directed for United States forces in Bosnia and 
     Herzegovina in support of the objectives identified pursuant 
     to paragraph (1), including a specific discussion of--
       (i) the mission of the United States forces, if any, in 
     connection with the pursuit and apprehension of war 
     criminals;
       (ii) the mission of the United States forces, if any, in 
     connection with civilian police functions;
       (iii) the mission of the United States forces, if any, in 
     connection with the resettlement of refugees; and
       (iv) the missions undertaken by the United States forces, 
     if any, in support of international and local civilian 
     authorities.
       (C) An assessment of the risk for the United States forces 
     in Bosnia and Herzegovina, including, for each mission 
     identified pursuant to subparagraph (B), the assessment of 
     the Chairman of the Joint Chiefs of Staff regarding the 
     nature and level of risk of the mission for the safety and 
     well-being of United States military personnel.
       (D) An assessment of the cost to the United States, by 
     fiscal year, of carrying out the missions identified pursuant 
     to subparagraph (B) for the period indicated in the schedule 
     provided pursuant to subparagraph (A).
       (E) A joint assessment by the Secretary of Defense and the 
     Secretary of State of the status of planning for--
       (i) the assumption of all remaining military missions 
     inside Bosnia and Herzegovina by European military and 
     paramilitary forces; and
       (ii) the establishment and support of forward-based United 
     States rapid response force outside of Bosnia and Herzegovina 
     that would be capable of deploying rapidly to defeat military 
     threats to a European follow-on force inside Bosnia and 
     Herzegovina, and of providing whatever logistical, 
     intelligence, and air support is needed to ensure that a 
     European follow-on force is fully capable of accomplishing 
     its missions under the Dayton Agreement.
       (e) Dayton Agreement Defined.--In this section, the term 
     ``Dayton Agreement'' means the General Framework Agreement 
     for Peace in Bosnia and Herzegovina, together with annexes 
     relating thereto, done at Dayton, November 10 through 16, 
     1995.

     SEC. 1073. COMMISSION TO ASSESS THE RELIABILITY, SAFETY, AND 
                   SECURITY OF THE UNITED STATES NUCLEAR 
                   DETERRENT.

       (a) Establishment.--There is hereby established a 
     commission to be known as the

[[Page S7513]]

     ``Commission for Assessment of the Reliability, Safety, and 
     Security of the United States Nuclear Deterrent''.
       (b) Composition.--(1) The Commission shall be composed of 
     six members who shall be appointed from among private 
     citizens of the United States with knowledge and expertise in 
     the technical aspects of design, maintenance, and deployment 
     of nuclear weapons, as follows:
       (A) Two members appointed by the Majority Leader of the 
     Senate.
       (B) One member appointed by the Minority Leader of the 
     Senate.
       (C) Two members appointed by the Speaker of the House of 
     Representatives.
       (D) One member appointed by the Minority Leader of the 
     House of Representatives.
       (2) The Senate Majority Leader and the Speaker of the House 
     of Representatives shall each appoint one member to serve for 
     five years and one member to serve for two years. The 
     Minority Leaders of the Senate and House of Representatives 
     shall each appoint one member to serve for five years. A 
     member may be reappointed.
       (3) Any vacancy in the Commission shall be filled in the 
     same manner as the original appointment.
       (4) All members of the Commission shall hold appropriate 
     security clearances.
       (c) Chairman.--The Majority Leader of the Senate, after 
     consultation with the Speaker of the House of Representatives 
     and the Minority Leaders of the Senate and House of 
     Representatives, shall designate one of the members of the 
     Commission, without regard to the term of appointment of that 
     member, to serve as Chairman of the Commission.
       (d) Duties of Commission.--(1) Each year the Commission 
     shall assess, for Congress--
       (A) the safety, security, and reliability of the nuclear 
     deterrent forces of the United States; and
       (B) the annual certification on the safety, security, and 
     reliability of the nuclear weapons stockpile of the United 
     States that is provided by the directors of the national 
     weapons laboratories through the Secretary of Energy to the 
     President.
       (2) The Commission shall submit to Congress an annual 
     report, in classified form, setting forth the findings and 
     conclusions resulting from each assessment.
       (e) Cooperation of Other Agencies.--(1) The Commission may 
     secure directly from the Department of Energy, the Department 
     of Defense, or any of the national weapons laboratories or 
     plants or any other Federal department or agency information 
     that the Commission considers necessary for the Commission to 
     carry out its duties.
       (2) For carrying out its duties, the Commission shall be 
     provided full and timely cooperation by the Secretary of 
     Energy, the Secretary of Defense, the Commander of United 
     States Strategic Command, the Directors of the Los Alamos 
     National Laboratory, the Lawrence Livermore National 
     Laboratory, the Sandia National Laboratories, the Savannah 
     River Site, the Y-12 Plant, the Pantex Facility, and the 
     Kansas City Plant, and any other official of the United 
     States that the Chairman determines as having information 
     described in paragraph (1).
       (3) The Secretary of Energy and the Secretary of Defense 
     shall each designate at least one officer or employee of the 
     Department of Energy and the Department of Defense, 
     respectively, to serve as a liaison officer between the 
     department and the Commission.
       (f) Commission Procedures.--(1) The Commission shall meet 
     at the call of the Chairman.
       (2) Four members of the Commission shall constitute a 
     quorum, except that the Commission may designate a lesser 
     number of members as a quorum for the purpose of holding 
     hearings. The Commission shall act by resolution agreed to by 
     a majority of the members of the Commission.
       (3) Any member or agent of the Commission may, if 
     authorized by the Commission, take any action that the 
     Commission is authorized to take under this section.
       (4) The Commission may establish panels composed of less 
     than the full membership of the Commission for the purpose of 
     carrying out the Commission's duties. Findings and 
     conclusions of a panel of the Commission may not be 
     considered findings and conclusions of the Commission unless 
     approved by the Commission.
       (5) The Commission or, at its direction, any panel or 
     member of the Commission, may, for the purpose of carrying 
     out its duties, hold hearings, sit and act at times and 
     places, take testimony, receive evidence, and administer 
     oaths to the extent that the Commission or any panel or 
     member considers advisable.
       (g) Personnel Matters.--(1) A member of the Commission 
     shall be compensated at the daily equivalent of the rate of 
     basic pay established for level V of the Executive Schedule 
     under 5316 of title 5, United States Code, for each day on 
     which the member is engaged in any meeting, hearing, 
     briefing, or other work in the performance of duties of the 
     Commission.
       (2) A member of the Commission shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     the member's home or regular place of business in the 
     performance of services for the Commission.
       (3) The Chairman of the Commission may, without regard to 
     the provisions of the title 5, United States Code, governing 
     appointments in the competitive service, appoint a staff 
     director and such additional personnel as may be necessary to 
     enable the Commission to perform its duties. The Chairman of 
     the Commission may fix the pay of the staff director and 
     other personnel without regard to the provisions of chapter 
     51, and subchapter III of chapter 53 of title 5, United 
     States Code, relating to classification of positions and 
     General Schedule pay rates, except that the rate of pay fixed 
     under this paragraph for the staff director may not exceed 
     the rate payable for level V of the Executive Schedule under 
     section 5316 of such title.
       (4) Upon the request of the Chairman of the Commission, the 
     head of any Federal department or agency may detail, on a 
     nonreimbursable basis, any personnel of that department or 
     agency to the Commission to assist it in carrying out its 
     duties.
       (5) The Chairman of the Commission may procure temporary 
     and intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     payable for level V of the Executive Schedule and under 
     section 5316 of such title.
       (h) Miscellaneous Administrative Provisions.--(1) The 
     Commission may use the United States mails and obtain 
     printing and binding services in the same manner and under 
     the same conditions as other departments and agencies of the 
     Federal Government.
       (2) The Secretary of Defense and the Secretary of Energy 
     shall furnish the Commission with any administrative and 
     support services requested by the Commission and with office 
     space within the Washington, District Columbia, metropolitan 
     area that is sufficient for the administrative offices of the 
     Commission and for holding general meetings of Commission.
       (i) Funding.--The Secretary of Defense and the Secretary of 
     Energy shall each contribute 50 percent of the amount of 
     funds that are necessary for the Commission to carry out its 
     duties. Upon receiving from the Chairman of the Commission a 
     written certification of the amount of funds that is 
     necessary for funding the activities of the Commission for a 
     period, the Secretaries shall promptly make available to the 
     Commission funds in the total amount specified in the 
     certification. Funds available for the Department of Defense 
     for Defense-wide research, development, test, and evaluation 
     shall be available for the Department of Defense 
     contribution. Funds available for the Department of Energy 
     for atomic energy defense activities shall be available for 
     the Department of Energy contribution.
       (j) Termination of the Commission.--The Commission shall 
     terminate three years after the date of the appointment of 
     the member designated as Chairman.
       (k) Initial Implementation.--All appointments to the 
     Commission shall be made not later than 45 days after the 
     date of the enactment of this Act. The Commission shall 
     convene its first meeting not later than 30 days after the 
     date as of which all members of the Commission have been 
     appointed.

     SEC. 1074. AUTHORITY FOR WAIVER OF MORATORIUM ON ARMED FORCES 
                   USE OF ANTIPERSONNEL LANDMINES.

       Section 580 of the Foreign Operations, Export Financing, 
     and Related Programs Appropriations Act, 1996 (Public Law 
     104-107; 110 Stat. 751) is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Waiver Authority.--(1) The President may waive the 
     moratorium set forth in subsection (a) if the President 
     determines that the waiver is necessary in the national 
     security interests of the United States.
       ``(2) The President shall notify the President pro tempore 
     of the Senate and the Speaker of the House of Representatives 
     of the exercise of the authority provided by paragraph 
     (1).''.

     SEC. 1075. APPOINTMENT OF DIRECTOR AND DEPUTY DIRECTOR OF THE 
                   NAVAL HOME.

       (a) Appointment and Qualifications of Director and Deputy 
     Director.--Subsection (a) of section 1517 of the Armed Forces 
     Retirement Home Act of 1991 (24 U.S.C. 417) is amended--
       (1) in paragraph (2)--
       (A) by striking out ``Each Director'' and inserting in lieu 
     thereof ``The Director of the United States Soldiers' and 
     Airmen's Home''; and
       (B) by striking out subparagraph (B) and inserting in lieu 
     thereof the following:
       ``(B) meet the requirements of paragraph (4).'';
       (2) by redesignating paragraph (3) as paragraph (5); and
       (3) by inserting after paragraph (2) the following new 
     paragraphs (3) and (4):
       ``(3) The Director, and any Deputy Director, of the Naval 
     Home shall be appointed by the Secretary of Defense from 
     among persons recommended by the Secretaries of the military 
     departments who--
       ``(A) in the case of the position of Director, are 
     commissioned officers of the Armed Forces serving on active 
     duty in a pay grade above 0-5;
       ``(B) in the case of the position of Deputy Director, are 
     commissioned officers of the Armed Forces serving on active 
     duty in a pay grade above 0-4; and
       ``(C) meet the requirements of paragraph (4).

[[Page S7514]]

       ``(4) Each Director shall have appropriate leadership and 
     management skills, an appreciation and understanding of the 
     culture and norms associated with military service, and 
     significant military background.''.
       (b) Term of Director and Deputy Director.--Subsection (c) 
     of such section is amended--
       (1) by striking out ``(c) Term of Director.--'' and all 
     that follows through ``A Director'' in the second sentence 
     and inserting in lieu thereof ``(c) Terms of Directors.--(1) 
     The term of office of the Director of the United States 
     Soldiers' and Airmen's Home shall be five years. The 
     Director''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Director and the Deputy Director of the Naval 
     Home shall serve at the pleasure of the Secretary of 
     Defense.''.
       (c) Definitions.--Such section is further amended by adding 
     at the end the following:
       ``(g) Definitions.--In this section:
       ``(1) The term `United States Soldiers' and Airmen's Home' 
     means the separate facility of the Retirement Home that is 
     known as the United States Soldiers' and Airmen's Home.
       ``(2) The term `Naval Home' means the separate facility of 
     the Retirement Home that is known as the Naval Home.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1998.

     SEC. 1076. SENSE OF THE CONGRESS ON THE DEFENSE SCIENCE AND 
                   TECHNOLOGY PROGRAM.

       (a) Funding Requirements for the Defense Science and 
     Technology Program Budget.--It is the sense of the Congress 
     that for each of the fiscal years 2000 through 2008, it 
     should be an objective of the Secretary of Defense to 
     increase the budget for the Defense Science and Technology 
     Program for the fiscal year over the budget for that program 
     for the preceding fiscal year by a percent that is at least 
     two percent above the rate of inflation as determined by the 
     Office of Management and Budget.
       (b) Guidelines for the Defense Science and Technology 
     Program.--
       (1) Relationship of defense science and technology program 
     to university research.--It is the sense of the Congress that 
     the following should be key objectives of the Defense Science 
     and Technology Program--
       (A) the sustainment of research capabilities in scientific 
     and engineering disciplines critical to the Department of 
     Defense;
       (B) the education and training of the next generation of 
     scientists and engineers in disciplines that are relevant to 
     future defense systems, particularly through the conduct of 
     basic research; and
       (C) the Continued support of the Defense Experimental 
     Program to Stimulate Competitive Research and research 
     programs at historically black colleges and universities and 
     minority institutions.
       (2) Relationship of the defense science and technology 
     program to commercial research and technology.--
       (A) It is the sense of the Congress that in supporting 
     projects within the Defense Science and Technology Program, 
     the Secretary of Defense should attempt to leverage 
     commercial research, technology, products, and processes for 
     the benefit of the Department of Defense.
       (B) It is the sense of the Congress that funds made 
     available for projects and programs of the Defense Science 
     and Technology Program should be used only for the benefit of 
     the Department of Defense, which includes--
       (i) the development of technology that has only military 
     applications;
       (ii) the development of militarily useful, commercially 
     viable technology; or
       (iii) the adaption of commercial technology, products, or 
     processes for military purposes.
       (3) Synergistic management of research and development.--It 
     is the sense of the Congress that the Secretary of Defense 
     may allocate a combination of funds available for the 
     Department of Defense for basic and applied research and for 
     advanced development to support any individual project or 
     program within the Defense Science and Technology Program. 
     This flexibility is not intended to change the allocation of 
     funds in any fiscal year among basic and applied research and 
     advanced development.
       (c) Definitions.--In this section:
       (1) The term ``Defense Science and Technology Program'' 
     means basic and applied research and advanced development.
       (2) The term ``basic and applied research'' means work 
     funded in program elements for defense research and 
     development under Department of Defense R&D Budget Activities 
     1 or 2.
       (3) The term ``advanced development'' means work funded in 
     program elements for defense research and development under 
     Department of Defense R&D Budget Activity 3.

     SEC. 1077. DEMILITARIZATION AND EXPORTATION OF DEFENSE 
                   PROPERTY.

       (a) Centralized Assignment of Demilitarization Codes for 
     Defense Property.--(1) Chapter 153 of title 10, United States 
     Code, is amended by inserting after section 2572 the 
     following:

     ``Sec. 2573. Demilitarization codes for defense property

       ``(a) Authority.--The Secretary of Defense shall--
       ``(1) assign the demilitarization codes to the property 
     (other than real property) of the Department of Defense; and
       ``(2) take any action that the Secretary considers 
     necessary to ensure that the property assigned 
     demilitarization codes is demilitarized in accordance with 
     the assigned codes.
       ``(b) Supremacy of Codes.--A demilitarization code assigned 
     to an item of property by the Secretary of Defense under this 
     section shall take precedence over any demilitarization code 
     assigned to the item before the date of enactment of the 
     Strom Thurmond National Defense Authorization Act for Fiscal 
     Year 1999 by any other official in the Department of Defense.
       ``(c) Enforcement.--The Secretary of Defense shall commit 
     the personnel and resources to the exercise of authority 
     under subsection (a) that are necessary to ensure that--
       ``(1) appropriate demilitarization codes are assigned to 
     property of the Department of Defense; and
       ``(2) property is demilitarized in accordance with the 
     assigned codes.
       ``(d) Annual Report.--The Secretary of Defense shall 
     include in the annual reports submitted to Congress under 
     section 113(c)(1) of this title in 1999 and 2000 a discussion 
     of the following:
       ``(1) The exercise of the authority under this section 
     during the fiscal year preceding the fiscal year in which the 
     report is submitted.
       ``(2) Any changes in the exercise of the authority that are 
     taking place in the fiscal year in which the report is 
     submitted or are planned for that fiscal year or any 
     subsequent fiscal year.
       ``(e) Definitions.--In this section:
       ``(1) The term `demilitarization code', with respect to 
     property, means a code that identifies the extent to which 
     the property must be demilitarized before disposal.
       ``(2) The term `demilitarize', with respect to property, 
     means to destroy the military offensive or defensive 
     advantages inherent in the property, by mutilation, cutting, 
     crushing, scrapping, melting, burning, or altering the 
     property so that the property cannot be used for the purpose 
     for which it was originally made.''.
       (2) The table of sections at the beginning of such chapter 
     153 is amended by inserting after the item relating to 
     section 2572 the following:

``2573. Demilitarization codes for defense property.''.
       (b) Criminal Offense.--(1) Chapter 27 of title 18, United 
     States Code, is amended by adding at the end the following:

     ``Sec. 554. Violations of regulated acts involving the 
       exportation of United States property

       ``(a) Any person who--
       ``(1) fraudulently or knowingly exports or otherwise sends 
     from the United States (as defined in section 545 of this 
     title), or attempts to export or send from the United States 
     any merchandise contrary to any law of the United States; or

       ``(2) receives, conceals, buys, sells, or in any manner 
     facilitates, the transportation, concealment, or sale of any 
     merchandise prior to exportation, knowing that the 
     merchandise is intended for exportation in violation of 
     Federal law;

     shall be fined under this title, imprisoned not more than 5 
     years, or both.
       ``(b) The penalties under this section shall be in addition 
     to any other applicable criminal penalty.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following:

``554. Violations of regulated acts involving the exportation of United 
              States property.''.

     SEC. 1078. DESIGNATION OF AMERICA'S NATIONAL MARITIME MUSEUM.

       (a) Designation of America's National Maritime Museum.--The 
     Mariners' Museum building located at 100 Museum Drive, 
     Newport News, Virginia, and the South Street Seaport Museum 
     buildings located at 207 Front Street, New York, New York, 
     shall be known and designated as ``America's National 
     Maritime Museum''.
       (b) Reference to America's National Maritime Museum.--Any 
     reference in a law, map, regulation, document, paper, or 
     other record of the United States to the buildings referred 
     to in subsection (a) shall be deemed to be a reference to 
     America's National Maritime Museum.
       (c) Later Additions of Other Museums Not Precluded.--The 
     designation of museums named in subsection (a) as America's 
     National Maritime Museum does not preclude the addition of 
     any other museum to the group of museums covered by that 
     designation.
       (d) Criteria for Later Additions.--A museum is appropriate 
     for designation as a museum of America's National Maritime 
     Museum if the museum--
       (1) houses a collection of maritime artifacts clearly 
     representing America's maritime heritage; and
       (2) provides outreach programs to educate the public on 
     America's maritime heritage.

     SEC. 1079. BURIAL HONORS FOR VETERANS.

       (a) Findings.--The Senate makes the following findings:
       (1) Throughout the years, men and women have unselfishly 
     answered the call to arms, at tremendous personal sacrifice. 
     Burial honors for deceased veterans are an important means of 
     reminding Americans of the sacrifices endured to keep the 
     Nation free.
       (2) The men and women who serve honorably in the Armed 
     Forces, whether in war or peace, and whether discharged, 
     separated, or

[[Page S7515]]

     retired, deserve commemoration for their military service at 
     the time of their death by an appropriate military tribute.
       (3) It is tremendously important to pay an appropriate 
     final tribute on behalf of a grateful Nation to honor 
     individuals who served the Nation in the Armed Forces.
       (b) Conference on Military Burial Honor Practices.--(1) Not 
     later than October 31, 1998, the Secretary of Defense shall, 
     in consultation with the Secretary of Veterans Affairs, 
     convene and preside over a conference for the purpose of 
     determining means of improving and increasing the 
     availability of military burial honors for veterans. The 
     Secretary of Veterans Affairs shall also participate in the 
     conference.
       (2) The Secretaries shall invite and encourage the 
     participation at the conference of appropriate 
     representatives of veterans service organizations.
       (3) The participants in the conference shall--
       (A) review current policies and practices of the military 
     departments and the Department of Veterans Affairs relating 
     to the provision of military honors at the burial of 
     veterans;
       (B) analyze the costs associated with providing military 
     honors at the burial of veterans, including the costs 
     associated with utilizing personnel and other resources for 
     that purpose;
       (C) assess trends in the rate of death of veterans; and
       (D) propose, consider, and determine means of improving and 
     increasing the availability of military honors at the burial 
     of veterans.
       (4) Not later than 180 days after the date of enactment of 
     this Act, the Secretary of Defense shall submit to Congress a 
     report on the conference under this subsection. The report 
     shall set forth any modifications to Department of Defense 
     directives on military burial honors adopted as a result of 
     the conference and include any recommendations for 
     legislation that the Secretary considers appropriate as a 
     result of the conference.
       (c) Veterans Service Organization Defined.--In this 
     section, the term ``veterans service organization'' means any 
     organization recognized by the Secretary of Veterans Affairs 
     under section 5902 of title 38, United States Code.

     SEC. 1080. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

       Section 1412 of the Department of Defense Authorization 
     Act, 1986 (Public Law 99-145; 50 U.S.C. 1521) is amended by 
     adding at the end of subsection (c) the following:
       ``(4)(A) The Director of the Federal Emergency Management 
     Agency shall carry out a program to provide assistance to 
     State and local governments in developing capabilities to 
     respond to emergencies involving risks to the public health 
     or safety within their jurisdictions that are identified by 
     the Secretary as being risks resulting from--
       ``(i) the storage of any such agents and munitions at 
     military installations in the continental United States; or
       ``(ii) the destruction of such agents and munitions at 
     facilities referred to in paragraph (1)(B).
       ``(B) No assistance may be provided under this paragraph 
     after the completion of the destruction of the United States 
     stockpile of lethal chemical agents and munitions.''.

     SEC. 1081. SENSE OF SENATE REGARDING THE AUGUST 1995 
                   ASSASSINATION ATTEMPT AGAINST PRESIDENT 
                   SHEVARDNADZE OF GEORGIA.

       (a) Findings.--Congress makes the following findings:
       (1) On Tuesday, August 29, 1995, President Eduard 
     Shevardnadze of Georgia narrowly survived a car bomb attack 
     as he departed his offices in the Georgian Parliament 
     building to attend the signing ceremony for the new 
     constitution of Georgia.
       (2) The former Chief of the Georgian National Security 
     Service, Lieutenant General Igor Giorgadze, after being 
     implicated in organizing the August 29, 1995, assassination 
     attempt on President Shevardnadze, fled Georgia from the 
     Russian-controlled Varziani airbase on a Russian military 
     aircraft.
       (3) Lieutenant General Giorgadze has been seen openly in 
     Moscow and is believed to have been given residence at a 
     Russian government facility despite the fact that Interpol is 
     conducting a search for Lieutenant General Giorgadze for his 
     role in the assassination attempt against President 
     Shervardnadze.
       (4) The Russian Interior Ministry claims that it is unable 
     to locate Lieutenant General Giorgadze in Moscow.
       (5) The Georgian Security and Interior Ministries presented 
     information to the Russian Interior Ministry on November 13, 
     1996; January 17, 1997; March 7, 1997; March 24, 1997 and 
     August 12, 1997, which included the exact location in Moscow 
     of where Lieutenant General Giorgadze's family lived, the 
     exact location where Lieutenant General Giorgadze lived 
     outside of Moscow in a dacha of the Russian Ministry of 
     Defense; as well as the changing official Russian government 
     license tag numbers and description of the automobile that 
     Lieutenant General Giorgadze uses; the people he associates 
     with; the apartments he visits, and the places including 
     restaurants, markets, and companies, that he frequents.
       (6) On May 12, 1998, the Moscow-based Russian newspaper 
     Zavtra carried an interview with Lieutenant General Giorgadze 
     in which Lieutenant General Giorgadze calls for the overthrow 
     of the Government of Georgia.
       (7) Title II of the Foreign Operations Appropriations, 
     Export Financing, and Related Programs Appropriations Act, 
     1998 (Public Law 105-118) prohibits assistance to any 
     government of the new independent states of the former Soviet 
     Union if that government directs any action in violation of 
     the national sovereignty of any other new independent state.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Secretary of Defense should--
       (1) urge the Government of the Russian Federation to 
     extradite the former Chief of the Georgian National Security 
     Service, Lieutenant General Igor Giorgadze, to Georgia for 
     the purpose of standing trial for his role in the attempted 
     assassination of Georgian President Eduard Shevardnadze on 
     August 29, 1995;
       (2) request cooperation from the Minister of Defense of the 
     Russian Federation and the Government of the Russian 
     Federation to ensure that Russian military bases on Georgian 
     territory are no longer used to facilitate the escape of 
     assassins seeking to kill the freely elected President of 
     Georgia and to otherwise respect the national sovereignty of 
     Georgia; and
       (3) use all authorities available to the United States 
     Government to provide urgent and immediate assistance to 
     ensure to the maximum extent practicable the personal 
     security of President Shevardnadze.

     SEC. 1082. ISSUANCE OF BURIAL FLAGS FOR DECEASED MEMBERS AND 
                   FORMER MEMBERS OF THE SELECTED RESERVE.

       Section 2301(a) of title 38, United States Code, is 
     amended--
       (1) by striking out ``and'' at the end of paragraph (1);
       (2) by striking out the period at the end of paragraph (2) 
     and inserting in lieu thereof ``; and''; and
       (3) by adding at the end the following:
       ``(3) deceased individual who--
       ``(A) was serving as a member of the Selected Reserve (as 
     described in section 10143 of title 10) at the time of death;
       ``(B) had served at least one enlistment, or the period of 
     initial obligated service, as a member of the Selected 
     Reserve and was discharged from service in the Armed Forces 
     under conditions not less favorable than honorable; or
       ``(C) was discharged from service in the Armed Forces under 
     conditions not less favorable than honorable by reason of a 
     disability incurred or aggravated in line of duty during the 
     individual's initial enlistment, or period of initial 
     obligated service, as a member of the Selected Reserve.''.

     SEC. 1083. ELIMINATING SECRET SENATE HOLDS.

       (a) Standing Order.--It is a standing order of the Senate 
     that a Senator who provides notice to leadership of his or 
     her intention to object to proceeding to a motion or matter 
     shall disclose the objection or hold in the Congressional 
     Record not later than 2 session days after the date of the 
     notice.
       (b) Rulemaking.--This section is adopted--
       (1) as an exercise of the rulemaking power of the Senate 
     and as such it is deemed a part of the rules of the Senate 
     and it supersedes other rules only to the extent that it is 
     inconsistent with such rules; and
       (2) with full recognition of the constitutional right of 
     the Senate to change its rules at any time, in the same 
     manner, and to the same extent as in the case of any other 
     rule of the Senate.

     SEC. 1084. DEFENSE BURDENSHARING.

       (a) Revised Goals for Efforts To Increase Allied 
     Burdensharing.--Subsection (a) of section 1221 of the 
     National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 1935; 22 U.S.C. 1928 note) is 
     amended to read as follows:
       ``(a) Efforts To Increase Allied Burdensharing.--The 
     President shall seek to have each nation that has cooperative 
     military relations with the United States (including security 
     agreements, basing arrangements, or mutual participation in 
     multinational military organizations or operations) take one 
     or more of the following actions:
       ``(1) For any nation in which United States military 
     personnel are assigned to permanent duty ashore, increase its 
     financial contributions to the payment of the nonpersonnel 
     costs incurred by the United States Government for stationing 
     United States military personnel in that nation, with a goal 
     of achieving by September 30, 2000, 75 percent of such costs. 
     An increase in financial contributions by any nation under 
     this paragraph may include the elimination of taxes, fees, or 
     other charges levied on United States military personnel, 
     equipment, or facilities stationed in that nation.
       ``(2) Increase its annual budgetary outlays for national 
     defense as a percentage of its gross domestic product by 10 
     percent or at least to a percentage level commensurate to 
     that of the United States by September 30, 1999.
       ``(3) Increase the military assets (including personnel, 
     equipment, logistics, support and other resources) that it 
     contributes or has pledged to contribute to multinational 
     military activities worldwide by 10 percent by September 30, 
     1999.
       ``(4) Increase its annual budgetary outlays for foreign 
     assistance (funds to promote democratization, governmental 
     accountability and transparency, economic stabilization and 
     development, defense economic conversion, respect for the 
     rule of law and internationally recognized human rights, or 
     humanitarian relief efforts) by 10 percent, or to

[[Page S7516]]

     provide such foreign assistance at a minimum annual rate 
     equal to one percent of its gross domestic product, by 
     September 30, 1999.''.
       (b) Revised Requirement for Report on Progress in 
     Increasing Allied Burdensharing.--Subsection (c) of such 
     section is amended to read as follows:
       ``(c) Report on Progress in Increasing Allied 
     Burdensharing.--Not later than March 1, 1999, the Secretary 
     of Defense shall submit to Congress a report on--
       ``(1) steps taken by other nations toward completing the 
     actions described in subsection (a);
       ``(2) all measures taken by the President, including those 
     authorized in subsection (b), to achieve the actions 
     described in subsection (a);
       ``(3) the difference between the amount allocated by other 
     nations for each of the actions described in subsection (a) 
     during the period beginning on October 1, 1996, and ending on 
     September 30, 1997, and during the period beginning on 
     October 1, 1997, and ending on September 30, 1998, or, in the 
     case of any nation for which the data for such periods is 
     inadequate, the difference between the amounts for the latest 
     periods for which adequate data is available; and
       ``(4) the budgetary savings to the United States that are 
     expected to accrue as a result of the steps described under 
     paragraph (1).''.
       (c) Extension of Deadline for Report Regarding National 
     Security Bases for Forward Deployment and Burdensharing 
     Relationships.--Subsection (d)(2) of such section is amended 
     by striking out ``March 1, 1998'' and inserting in lieu 
     thereof ``March 1, 1999''.

     SEC. 1085. REVIEW OF DEFENSE AUTOMATED PRINTING SERVICE 
                   FUNCTIONS.

       (a) Review Required.--The Secretary of Defense shall 
     provide for a review of the functions of the Defense 
     Automated Printing Service in accordance with this section 
     and submit to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives the matters required under subsection (d) not 
     later than March 31, 1999.
       (b) Performance by Independent Entity.--The Secretary of 
     Defense shall select the General Accounting Office, an 
     experienced entity in the private sector, or any other entity 
     outside the Department of Defense to perform the review. The 
     Comptroller General shall perform the review if the Secretary 
     selects the Comptroller General to do so.
       (c) Report.--The entity performing the review under this 
     section shall submit to the Secretary of Defense a report 
     that sets forth the findings and recommendations of that 
     entity resulting from the review. The report shall contain 
     the following:
       (1) The functions that are inherently national security 
     functions and, as such, need to be performed within the 
     Department of Defense, together with a detailed justification 
     for the determination for each such function.
       (2) The functions that are appropriate for transfer to 
     another appropriate entity to perform, including private 
     sector entity.
       (3) Any recommended legislation and any administrative 
     action that is necessary for transferring or outsourcing the 
     functions.
       (4) A discussion of the costs or savings associated with 
     the transfers or outsourcing.
       (5) A description of the management structure of the 
     Defense Automated Printing Service.
       (6) A list of all sites where functions of the Defense 
     Automated Printing Service are performed by the Defense 
     Automated Printing Service.
       (7) The total number of the personnel employed by the 
     Defense Automated Printing Service and the locations where 
     the personnel perform the duties as employees.
       (8) A description of the functions performed by the Defense 
     Automated Printing Service and, for each such function, the 
     number of employees of the Defense Automated Printing Service 
     that perform the function.
       (9) For each site identified under paragraph (6), an 
     assessment of each type of equipment at the site.
       (10) The type and explanation of the networking and 
     technology integration linking all of the sites referred to 
     in paragraph (6).
       (11) The current and future requirements of customers of 
     the Defense Automated Printing Service.
       (12) An assessment of the effectiveness of the current 
     structure of the Defense Automated Printing Service in 
     supporting current and future customer requirements and plans 
     to address any deficiencies in supporting such requirements.
       (13) A description and discussion of the best business 
     practices that are used by the Defense Automated Printing 
     Service and of other best business that could be used by the 
     Defense Automated Printing Service.
       (14) Options for maximizing the Defense Automated Printing 
     Service structure and services to provide the most cost 
     effective service to its customers.
       (d) Review and Comments of Secretary of Defense.--(1) After 
     reviewing the report, the Secretary of Defense shall submit 
     the report to Congress, together with the Secretary's 
     comments on the report and a plan to transfer or outsource 
     from the Defense Automated Printing Service to another 
     appropriate entity the functions of the Defense Automated 
     Printing Service that--
       (1) are not identified in the report as being inherently 
     national security functions; and
       (2) the Secretary believes should be transferred or 
     outsourced for performance outside the Department of Defense 
     in accordance with law.
       (e) Extension of Requirement for Competitive Procurement of 
     Services.--Section 351(a) of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 266), as amended by section 351(a) of Public Law 
     104-201 (110 Stat. 2490) and section 387(a)(1) of Public Law 
     105-85 (111 Stat. 1713), is further amended by striking out 
     ``1998'' and inserting in lieu thereof ``1999''.

     SEC. 1086. INCREASED MISSILE THREAT IN ASIA-PACIFIC REGION.

       (a) Study.--The Secretary of Defense shall carry out a 
     study of the architecture requirements for the establishment 
     and operation of a theater ballistic missile defense system 
     in the Asia-Pacific region that would have the capability to 
     protect key regional allies of the United States.
       (b) Report.--(1) Not later than January 1, 1999, the 
     Secretary shall submit to the Committee on National Security 
     of the House of Representatives and the Committee on Armed 
     Services of the Senate a report containing--
       (A) the results of the study conducted under subsection 
     (a);
       (B) the factors used to obtain such results; and
       (C) a description of any existing United States missile 
     defense system that could be transferred to key allies of the 
     United States in the Asia-Pacific region to provide for their 
     self-defense against limited ballistic missile attacks.
       (2) The report shall be submitted in both classified and 
     unclassified form.

     SEC. 1087. COOPERATION BETWEEN THE DEPARTMENT OF THE ARMY AND 
                   THE EPA IN MEETING CWC REQUIREMENTS.

       (a) Findings.--The Senate finds that:
       (1) Compliance with international obligations to destroy 
     the United States chemical stockpile by April 28, 2007, as 
     required under the Chemical Weapons Convention (CWC), is a 
     national priority.
       (2) The President should ensure that the Department of 
     Defense and the Department of the Army receive all necessary 
     assistance from Federal agencies in expediting and 
     accelerating the destruction of the lethal chemical 
     stockpile.
       (3) The Environmental Protection Agency, as one of the 
     Federal agencies with responsibilities to assist the 
     Department of Defense and the Department of the Army, has 
     asserted that it is not adequately funded to provide, or meet 
     its National responsibilities under the Resource Conservation 
     and Recovery Act (RCRA) permitting requirements, in order to 
     assist the United States Government in meeting its 
     international obligations to destroy its lethal chemical 
     stockpile.
       (4) The Environmental Protection Agency (EPA) should work 
     in concert with the State and local governments in this 
     process, and that they should properly budget for this 
     process.
       (b) Report Required.--The Department of Defense, in 
     coordination with the Environmental Protection Agency, shall 
     report to the congressional defense committees by April 1, 
     1999, on the following--
       (1) responsibilities associated with obligations under the 
     Resource Conservation and Recovery Act (RCRA) permitting 
     process related to United States international obligations 
     under the CWC to destroy the United States chemical 
     stockpile;
       (2) technical assistance provided by the EPA to its 
     regional offices and the States and local governments in the 
     permitting process, and how that assistance facilitates the 
     issuance of the environmental permits at the various sites;
       (3) responsibility of the Department of Defense to provide 
     funding to the EPA, for the facilitation of meetings of the 
     National Chemical Agent Demilitarization Workgroup, meetings 
     between the Office of Solid Waste and the affected EPA 
     Regional Offices and States, and meetings between the Office 
     of Solid Waste, the Program Manager for Chemical 
     Demilitarization and the Department of Defense; and
       (4) responsibility of the Department of Defense and the 
     Department of the Army to provide funds to the Environmental 
     Protection Agency to hire full-time equivalents to assist in 
     the formulation of RCRA permits.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

     SEC. 1101. REPEAL OF EMPLOYMENT PREFERENCE NOT NEEDED FOR 
                   RECRUITMENT AND RETENTION OF QUALIFIED CHILD 
                   CARE PROVIDERS.

       Section 1792 of title 10, United States Code, is amended--
       (1) by striking out subsection (d); and

     SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FACULTY MEMBERS 
                   OF THE UNITED STATES AIR FORCE INSTITUTE OF 
                   TECHNOLOGY.

       Section 9314(b)(2)(B) of title 10, United States Code, is 
     amended by striking out ``section 5306(e)'' and inserting in 
     lieu thereof ``section 5373''.
       (2) by redesignating subsection (e) as subsection (d).

[[Page S7517]]

     SEC. 1103. FOUR-YEAR EXTENSION OF VOLUNTARY SEPARATION 
                   INCENTIVE PAY AUTHORITY.

       Section 5597(e) of title 5, United States Code, is amended 
     by striking out ``September 30, 2001'' and inserting in lieu 
     thereof ``September 30, 2003''.

     SEC. 1104. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY 
                   RETIREMENT AUTHORITY.

       (a) Civil Service Retirement System.--Section 8336 of title 
     5, United States Code, is amended--
       (1) in subsection (d)(2), by inserting ``except in the case 
     of an employee described in subsection (o)(1),'' after 
     ``(2)''; and
       (2) by adding at the end the following:
       ``(o)(1) An employee of the Department of Defense who is 
     separated from the service under conditions described in 
     paragraph (2) after completing 25 years of service or after 
     becoming 50 years of age and completing 20 years of service 
     is entitled to an annuity.
       ``(2) Paragraph (1) applies to an employee who--
       ``(A) has been employed continuously by the Department of 
     Defense for more than 30 days before the date on which the 
     Secretary concerned requests the determinations required 
     under in subparagraph (D)(i);
       ``(B) is serving under an appointment that is not limited 
     by time;
       ``(C) has not received a decision notice of involuntary 
     separation for misconduct or unacceptable performance that is 
     pending decision; and
       ``(D) is separated from the service voluntarily during a 
     period in which--
       ``(i) the Department of Defense or the military department 
     or subordinate organization within the Department of Defense 
     or military department in which the employee is serving is 
     undergoing a major reorganization, a major reduction in 
     force, or a major transfer of function, and employees 
     comprising a significant percentage of the employees serving 
     in that department or organization are to be separated or 
     subject to an immediate reduction in the rate of basic pay 
     (without regard to subchapter VI of chapter 53, or comparable 
     provisions of law), as determined by the Office of Personnel 
     Management (under regulations prescribed by the Office) upon 
     the request of the Secretary concerned; and
       ``(ii) the employee is within the scope of an offer of 
     voluntary early retirement (as defined by organizational 
     unit, occupational series or level, geographical location, 
     any other similar factor that the Office of Personnel 
     Management determines appropriate, or any combination of such 
     definitions of scope), as determined by the Secretary 
     concerned under regulations prescribed by the Office.
       ``(3) In this subsection, the term `Secretary concerned' 
     means--
       ``(A) the Secretary of Defense, with respect to an employee 
     of the Department of Defense not employed in a position in a 
     military department;
       ``(B) the Secretary of the Army, with respect to an 
     employee of the Department of the Army;
       ``(C) the Secretary of the Navy, with respect to an 
     employee of the Department of the Navy;
       ``(D) the Secretary of the Air Force, with respect to an 
     employee of the Department of the Air Force.''.
       (b) Federal Employees' Retirement System.--Section 8414 of 
     such title is amended--
       (1) in subsection (b)(1)(B), inserting ``except in the case 
     of an employee described in subsection (d)(1),'' after 
     ``(B)''; and
       (2) by adding at the end the following:
       ``(d)(1) An employee of the Department of Defense who is 
     separated from the service under conditions described in 
     paragraph (2) after completing 25 years of service or after 
     becoming 50 years of age and completing 20 years of service 
     is entitled to an annuity.
       ``(2) Paragraph (1) applies to an employee who--
       ``(A) has been employed continuously by the Department of 
     Defense for more than 30 days before the date on which the 
     Secretary concerned requests the determinations required 
     under subparagraph (D)(i);
       ``(B) is serving under an appointment that is not limited 
     by time;
       ``(C) has not received a decision notice of involuntary 
     separation for misconduct or unacceptable performance that is 
     pending decision; and
       ``(D) is separated from the service voluntarily during a 
     period in which--
       ``(i) the Department of Defense or the military department 
     or subordinate organization within the Department of Defense 
     or military department in which the employee is serving is 
     undergoing a major reorganization, a major reduction in 
     force, or a major transfer of function, and employees 
     comprising a significant percentage of the employees serving 
     in that department or organization are to be separated or 
     subject to an immediate reduction in the rate of basic pay 
     (without regard to subchapter VI of chapter 53, or comparable 
     provisions of law), as determined by the Office of Personnel 
     Management (under regulations prescribed by the Office) upon 
     the request of the Secretary concerned; and
       ``(ii) the employee is within the scope of an offer of 
     voluntary early retirement (as defined by organizational 
     unit, occupational series or level, geographical location, 
     any other similar factor that the Office of Personnel 
     Management determines appropriate, or any combination of such 
     definitions of scope), as determined by the Secretary 
     concerned under regulations prescribed by the Office.
       ``(3) In this subsection, the term `Secretary concerned' 
     means--
       ``(A) the Secretary of Defense, with respect to an employee 
     of the Department of Defense not employed in a position in a 
     military department;
       ``(B) the Secretary of the Army, with respect to an 
     employee of the Department of the Army;
       ``(C) the Secretary of the Navy, with respect to an 
     employee of the Department of the Navy;
       ``(D) the Secretary of the Air Force, with respect to an 
     employee of the Department of the Air Force.''.
       (c) Conforming Amendments.--(1) Section 8339(h) of such 
     title is amended by striking out ``or (j)'' in the first 
     sentence and inserting in lieu thereof ``(j), or (o)''.
       (2) Section 8464(a)(1)(A)(i) of such title is amended by 
     striking out ``or (b)(1)(B)'' and inserting in lieu thereof 
     ``, (b)(1)(B), or (d)''.

     SEC. 1105. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY 
                   EXPERIMENTAL PERSONNEL MANAGEMENT PROGRAM FOR 
                   TECHNICAL PERSONNEL.

       (a) Program Authorized.--During the 5-year period beginning 
     on the date of the enactment of this Act, the Secretary of 
     Defense may carry out a program of experimental use of 
     special personnel management authority provided in this 
     section in order to facilitate the recruitment of eminent 
     experts in science or engineering for research and 
     development projects administered by the Defense Advanced 
     Research Projects Agency.
       (b) Special Personnel Management Authority.--Under the 
     program, the Secretary may--
       (1) appoint scientists and engineers from outside the civil 
     service and uniformed services (as such terms are defined in 
     section 2101 of title 5, United States Code) to not more than 
     20 scientific and engineering positions in the Defense 
     Advanced Research Projects Agency without regard to any 
     provision of title 5, United States Code, governing the 
     appointment of employees in the civil service;
       (2) prescribe the rates of basic pay for positions to which 
     employees are appointed under paragraph (1) at rates not in 
     excess of the maximum rate of basic pay authorized for 
     senior-level positions under section 5376 of title 5, United 
     States Code, notwithstanding any provision of such title 
     governing the rates of pay or classification of employees in 
     the executive branch; and
       (3) pay any employee appointed under paragraph (1) payments 
     in addition to basic pay within the limit applicable to the 
     employee under subsection (d)(1).
       (c) Limitation on Term of Appointment.--(1) Except as 
     provided in paragraph (2), the service of an employee under 
     an appointment under subsection (b)(1) may not exceed four 
     years.
       (2) The Secretary may, in the case of a particular 
     employee, extend the period to which service is limited under 
     paragraph (1) by up to two years if the Secretary determines 
     that such action is necessary to promote the efficiency of 
     the Defense Advanced Research Projects Agency.
       (d) Limitations on Additional Payments.--(1) The total 
     amount of the additional payments paid to an employee under 
     subsection (b)(3) for any 12-month period may not exceed the 
     least of the following amounts:
       (A) $25,000.
       (B) The amount equal to 25 percent of the employee's annual 
     rate of basic pay.
       (C) The amount of the limitation that is applicable for a 
     calendar year under section 5307(a)(1) of title 5, United 
     States Code.
       (2) An employee appointed under subsection (b)(1) is not 
     eligible for any bonus, monetary award, or other monetary 
     incentive for service except for payments authorized under 
     subsection (b)(3).
       (e) Period of Program.--(1) The program authorized under 
     this section shall terminate at the end of the 5-year period 
     referred to in subsection (a).
       (2) After the termination of the program--
       (A) no appointment may be made under paragraph (1) of 
     subsection (b);
       (B) a rate of basic pay prescribed under paragraph (2) of 
     that subsection may not take effect for a position; and
       (C) no period of service may be extended under subsection 
     (c)(1).
       (f) Savings Provisions.--In the case of an employee who, on 
     the day before the termination of the program, is serving in 
     a position pursuant to an appointment under subsection 
     (b)(1)--
       (1) the termination of the program does not terminate the 
     employee's employment in that position before the expiration 
     of the lesser of--
       (A) the period for which the employee was appointed; or
       (B) the period to which the employee's service is limited 
     under subsection (c), including any extension made under 
     paragraph (2) of that subsection before the termination of 
     the program; and
       (2) the rate of basic pay prescribed for the position under 
     subsection (b)(2) may not be reduced for so long (within the 
     period applicable to the employee under paragraph (1)) as the 
     employee continues to serve in the position without a break 
     in service.
       (g) Annual Report.--(1) Not later than October 15 of each 
     year, beginning in 1999, the Secretary of Defense shall 
     submit a report on the program to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives. The report submitted in a 
     year shall

[[Page S7518]]

     cover the 12-month period ending on the day before the 
     anniversary, in that year, of the date of the enactment of 
     this Act.
       (2) The annual report shall contain, for the period covered 
     by the report, the following:
       (A) A detailed discussion of the exercise of authority 
     under this section.
       (B) The sources from which appointees were recruited.
       (C) The methodology used for identifying and selecting 
     appointees.
       (D) Any additional information that the Secretary considers 
     helpful for assessing the utility of the authority under this 
     section.

              TITLE XII--JOINT WARFIGHTING EXPERIMENTATION

     SEC. 1201. FINDINGS.

       Congress makes the following findings:
       (1) The collapse of the Soviet Union in 1991 and the 
     unprecedented explosion of technological advances that could 
     fundamentally redefine military threats and military 
     capabilities in the future have generated a need to assess 
     the defense policy, strategy, and force structure necessary 
     to meet future defense requirements of the United States.
       (2) The assessment conducted by the administration of 
     President Bush (known as the ``Base Force'' assessment) and 
     the assessment conducted by the administration of President 
     Clinton (known as the ``Bottom-Up Review'') were important 
     attempts to redefine the defense strategy of the United 
     States and the force structure of the Armed Forces necessary 
     to execute that strategy.
       (3) Those assessments have become inadequate as a result of 
     the pace of global geopolitical change and the speed of 
     technological change, which have been greater than expected.
       (4) The Chairman of the Joint Chiefs of Staff reacted to 
     the changing environment by developing and publishing in May 
     1996 a vision statement, known as ``Joint Vision 2010'', to 
     be a basis for the transformation of United States military 
     capabilities. The vision statement embodies the improved 
     intelligence and command and control that is available in the 
     information age and sets forth the operational concepts of 
     dominant maneuver, precision engagement, full-dimensional 
     protection, and focused logistics to achieve the objective of 
     full spectrum dominance.
       (5) In 1996 Congress, concerned about the shortcomings in 
     defense policies and programs derived from the Base-Force 
     Review and the Bottom-Up Review, determined that there was a 
     need for a new, comprehensive assessment of the defense 
     strategy of the United States and the force structure of the 
     Armed Forces necessary for meeting the threats to the United 
     States in the 21st century.
       (6) As a result of that determination, Congress passed the 
     Military Force Structure Review Act of 1996 (subtitle B of 
     title IX of the National Defense Authorization Act for Fiscal 
     Year 1997), which required the Secretary of Defense to 
     complete in 1997 a quadrennial defense review of the defense 
     program of the United States. The review was required to 
     include a comprehensive examination of the defense strategy, 
     force structure, force modernization plans, infrastructure, 
     and other elements of the defense program and policies with a 
     view toward determining and expressing the defense strategy 
     of the United States and establishing a revised defense 
     program through 2005. The Act also established a National 
     Defense Panel to assess the Quadrennial Defense Review and to 
     conduct an independent, nonpartisan review of the strategy, 
     force structure, and funding required to meet anticipated 
     threats to the national security of the United States through 
     2010 and beyond.
       (7) The Quadrennial Defense Review, completed by the 
     Secretary of Defense in May 1997, defined the defense 
     strategy in terms of ``Shape, Respond, and Prepare Now''. The 
     Quadrennial Defense Review placed greater emphasis on the 
     need to prepare now for an uncertain future by exploiting the 
     revolution in technology and transforming the force toward 
     Joint Vision 2010. It concluded that our future force will be 
     different in character than our current force.
       (8) The National Defense Panel Report, published in 
     December 1997, concluded that ``the Department of Defense 
     should accord the highest priority to executing a 
     transformation strategy for the United States military, 
     starting now.'' The panel recommended the establishment of a 
     Joint Forces Command with the responsibility to be the joint 
     force integrator and provider and the responsibility for 
     driving the process for transforming United States forces, 
     including the conduct of joint experimentation, and to have 
     the budget for carrying out those responsibilities.
       (9) The assessments of both the Quadrennial Defense Review 
     and the National Defense Panel provide Congress with a 
     compelling argument that the future security environment and 
     the military challenges to be faced by the United States in 
     the future will be fundamentally different than the current 
     environment and challenges. The assessments also reinforce 
     the foundational premise of the Goldwater-Nichols Department 
     of Defense Reorganization Act of 1986 that warfare, in all of 
     its varieties, will be joint warfare requiring the execution 
     of developed joint operational concepts.
       (10) A process of joint experimentation is necessary for--
       (A) integrating advances in technology with changes in the 
     organizational structure of the Armed Forces and the 
     development of joint operational concepts that will be 
     effective against national security threats anticipated for 
     the future; and
       (B) identifying and assessing the interdependent aspects of 
     joint warfare that are key for transforming the conduct of 
     military operations by the United States to meet those 
     anticipated threats successfully.
       (11) It is critical for future readiness that the Armed 
     Forces of the United States innovatively investigate and test 
     technologies, forces, and joint operational concepts in 
     simulations, wargames, and virtual settings, as well as in 
     field environments under realistic conditions against the 
     full range of future challenges. It is essential that an 
     energetic and innovative organization be established and 
     empowered to design and implement a process of joint 
     experimentation to develop and validate new joint warfighting 
     concepts, along with experimentation by the Armed Forces, 
     that is directed at transforming the Armed Forces to meet the 
     threats to the national security that are anticipated for the 
     early 21st century. That process will drive changes in 
     doctrine, organization, training and education, materiel, 
     leadership, and personnel.
       (12) The Department of Defense is committed to conducting 
     aggressive experimentation as a key component of its 
     transformation strategy.
       (13) The competition of ideas is critical for achieving 
     effective transformation. Experimentation by each of the 
     Armed Forces has been, and will continue to be, a vital 
     aspect of the pursuit of effective transformation. Joint 
     experimentation leverages the effectiveness of each of the 
     Armed Forces and the Defense Agencies.

     SEC. 1202. SENSE OF CONGRESS.

       (a) Designation of Commander To Have Joint Warfighting 
     Experimentation Mission.--It is the sense of Congress that 
     Congress supports the initiative of the Secretary of Defense 
     and the Chairman of the Joint Chiefs of Staff to designate a 
     commander of a combatant command to have the mission for 
     joint warfighting experimentation, consistent with the 
     understanding of Congress that the Chairman of the Joint 
     Chiefs of Staff will assign the designated commander the 
     tasks to develop and validate new joint warfighting concepts 
     and capabilities, and to determine the implications, for 
     doctrine, organization, training and education, materiel, 
     leadership, and personnel, of the Department of Defense 
     strategy for transforming the Armed Forces to meet the 
     national security threats of the future.
       (b) Resources of Commander.--It is, further, the sense of 
     Congress that the commander designated to have the joint 
     warfighting experimentation mission should--
       (1) have sufficient freedom of action and authority over 
     the necessary forces to successfully establish and conduct 
     the process of joint warfighting experimentation;
       (2) be provided resources adequate for the joint 
     warfighting experimentation process; and
       (3) have authority over the use of the resources for the 
     planning, preparation, conduct, and assessment of joint 
     warfighting experimentation.
       (c) Authority and Responsibilities of Commander.--It is, 
     further, the sense of Congress that, for the conduct of joint 
     warfighting experimentation to be effective, it is necessary 
     that the commander designated to have the joint warfighting 
     experimentation mission also have the authority and 
     responsibility for the following:
       (1) Developing and implementing a process of joint 
     experimentation to formulate and validate concepts critical 
     for joint warfighting in the future, including (in such 
     process) analyses, simulations, wargames, information 
     superiority and other experiments, advanced concept 
     technology demonstrations, and joint exercises conducted in 
     virtual and actual field environments.
       (2) Planning, preparing, and conducting the program of 
     joint warfighting experimentation.
       (3) Assessing the effectiveness of organizational 
     structures, operational concepts, and technologies employed 
     in joint experimentation, investigating opportunities for 
     coordinating the evolution of the organizational structure of 
     the Armed Forces compatibly with the concurrent evolution of 
     advanced technologies, and investigating new concepts for 
     transforming joint warfighting capabilities to meet the 
     operational challenges expected to be encountered by the 
     Armed Forces in the early 21st century.
       (4) Coordinating with each of the Armed Forces and the 
     Defense Agencies regarding the development of the equipment 
     (including surrogate or real technologies, platforms, and 
     systems) necessary for the conduct of joint experimentation, 
     or, if necessary, developing such equipment directly.
       (5) Coordinating with each of the Armed Forces and the 
     Defense Agencies regarding the acquisition of the materiel, 
     supplies, services, and surrogate or real technology 
     resources necessary for the conduct of joint experimentation, 
     or, if necessary, acquiring such items and services directly.
       (6) Developing scenarios and measures of effectiveness for 
     joint experimentation.
       (7) Conducting so-called ``red team'' vulnerability 
     assessments as part of joint experimentation.
       (8) Assessing the interoperability of equipment and forces.
       (9) Providing the Secretary of Defense and the Chairman of 
     the Joint Chiefs of Staff

[[Page S7519]]

     with the commander's recommendations (developed on the basis 
     of joint experimentation) for reducing unnecessary redundancy 
     of equipment and forces.
       (10) Providing the Secretary of Defense and the Chairman of 
     the Joint Chiefs of Staff with the commander's 
     recommendations (developed on the basis of joint 
     experimentation) regarding synchronization of the fielding of 
     advanced technologies among the Armed Forces to enable the 
     development and execution of joint operational concepts.
       (11) Submitting, reviewing, and making recommendations (in 
     conjunction with the joint experimentation and evaluation 
     process) to the Chairman of the Joint Chiefs of Staff on 
     mission needs statements and operational requirements 
     documents.
       (12) Exploring new operational concepts (including those 
     developed within the Office of the Secretary of Defense and 
     Defense Agencies, other unified commands, the Armed Forces, 
     and the Joint Staff), and integrating and testing in joint 
     experimentation the systems and concepts that result from 
     warfighting experimentation by the Armed Forces and the 
     Defense Agencies.
       (13) Developing, planning, refining, assessing, and 
     recommending to the Secretary of Defense and the Chairman of 
     the Joint Chiefs of Staff the most promising joint concepts 
     and capabilities for experimentation and assessment.
       (14) Assisting the Secretary of Defense and the Chairman of 
     the Joint Chiefs of Staff to prioritize joint requirements 
     and acquisition programs on the basis of joint warfighting 
     experimentation.
       (d) Continued Experimentation by Other Defense 
     Organizations.--It is, further, the sense of Congress that--
       (1) the Armed Forces are expected to continue to develop 
     concepts and conduct intraservice and multiservice 
     warfighting experimentation within their core competencies; 
     and
       (2) the commander of United States Special Operations 
     Command is expected to continue to develop concepts and 
     conduct joint experimentation associated with special 
     operations forces.
       (e) Congressional Review.--It is, further, the sense of 
     Congress that--
       (1) Congress will carefully review the initial report and 
     annual reports on joint warfighting experimentation required 
     under section 1203 to determine the adequacy of the scope and 
     pace of the transformation of the Armed Forces to meet future 
     challenges to the national security; and
       (2) if the progress is inadequate, Congress will consider 
     legislation to establish a unified combatant command with the 
     mission, forces, budget, responsibilities, and authority 
     described in the preceding provisions of this section.

     SEC. 1203. REPORTS ON JOINT WARFIGHTING EXPERIMENTATION.

       (a) Initial Report.--(1) On such schedule as the Secretary 
     of Defense shall direct, the commander of the combatant 
     command assigned the mission for joint warfighting 
     experimentation shall submit to the Secretary an initial 
     report on the implementation of joint experimentation. Not 
     later than April 1, 1999, the Secretary shall submit the 
     report, together with any comments that the Secretary 
     considers appropriate and any comments that the Chairman of 
     the Joint Chiefs of Staff considers appropriate, to the 
     Chairmen of the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives.
       (2) The initial report of the commander shall include the 
     following:
       (A) The commander's understanding of the commander's 
     specific authority and responsibilities and of the 
     commander's relationship to the Secretary of Defense, the 
     Chairman of the Joint Chiefs of Staff, the Joint Staff, the 
     commanders of other combatant commands, the Armed Forces, and 
     the Defense Agencies and activities.
       (B) The organization of the commander's combatant command, 
     and of its staff, for carrying out the joint warfighting 
     experimentation mission.
       (C) The process established for tasking forces to 
     participate in joint warfighting experimentation and the 
     commander's specific authority over the forces.
       (D) Any forces designated or made available as joint 
     experimentation forces.
       (E) The resources provided for joint warfighting 
     experimentation, including the personnel and funding for the 
     initial implementation of joint experimentation, the process 
     for providing the resources to the commander, the categories 
     of the funding, and the authority of the commander for budget 
     execution.
       (F) The authority of the commander, and the process 
     established, for the development and acquisition of the 
     material, supplies, services, and equipment necessary for the 
     conduct of joint warfighting experimentation, including the 
     authority and process for development and acquisition by the 
     Armed Forces and the Defense Agencies and the authority and 
     process for development and acquisition by the commander 
     directly.
       (G) The authority of the commander to design, prepare, and 
     conduct joint experiments (including the scenarios and 
     measures of effectiveness used) for assessing operational 
     concepts for meeting future challenges to the national 
     security.
       (H) The role assigned the commander for--
       (i) integrating and testing in joint warfighting 
     experimentation the systems that emerge from warfighting 
     experimentation by the Armed Forces or the Defense Agencies;
       (ii) assessing the effectiveness of organizational 
     structures, operational concepts, and technologies employed 
     in joint warfighting experimentation; and
       (iii) assisting the Secretary of Defense and the Chairman 
     of the Joint Chiefs of Staff in prioritizing acquisition 
     programs in relationship to future joint warfighting 
     capabilities.
       (I) Any other comments that the commander considers 
     appropriate.
       (b) Annual Report.--(1) On such schedule as the Secretary 
     of Defense shall direct, the commander of the combatant 
     command assigned the mission for joint warfighting 
     experimentation shall submit to the Secretary an annual 
     report on the conduct of joint experimentation activities for 
     the fiscal year ending in the year of the report. Not later 
     than December 1 of each year, the Secretary shall submit the 
     report, together with any comments that the Secretary 
     considers appropriate and any comments that the Chairman of 
     the Joint Chiefs of Staff considers appropriate, to the 
     Chairmen of the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives. The first annual report shall be submitted 
     in 1999.
       (2) The annual report of the commander shall include, for 
     the fiscal year covered by the report, the following:
       (A) Any changes in--
       (i) the commander's authority and responsibilities for 
     joint warfighting experimentation;
       (ii) the commander's relationship to the Secretary of 
     Defense, the Chairman of the Joint Chiefs of Staff, the Joint 
     Staff, the commanders of the other combatant commands, the 
     Armed Forces, or the Defense Agencies or activities;
       (iii) the organization of the commander's command and staff 
     for joint warfighting experimentation;
       (iv) any forces designated or made available as joint 
     experimentation forces;
       (v) the process established for tasking forces to 
     participate in joint experimentation activities or the 
     commander's specific authority over the tasked forces;
       (vi) the procedures for providing funding for the 
     commander, the categories of funding, or the commander's 
     authority for budget execution;
       (vii) the authority of the commander, and the process 
     established, for the development and acquisition of the 
     material, supplies, services, and equipment necessary for the 
     conduct of joint warfighting experimentation;
       (viii) the commander's authority to design, prepare, and 
     conduct joint experiments (including the scenarios and 
     measures of effectiveness used) for assessing operational 
     concepts for meeting future challenges to the national 
     security; or
       (ix) any role described in subsection (a)(2)(H).
       (B) The conduct of joint warfighting experimentation 
     activities, including the number of activities, the forces 
     involved, the national security challenges addressed, the 
     operational concepts assessed, and the scenarios and measures 
     of effectiveness used.
       (C) An assessment of the results of warfighting 
     experimentation within the Department of Defense.
       (D) The effect of warfighting experimentation on the 
     process for transforming the Armed Forces to meet future 
     challenges to the national security.
       (E) Any recommendations that the commander considers 
     appropriate regarding--
       (i) the development or acquisition of advanced 
     technologies; or
       (ii) changes in organizational structure, operational 
     concepts, or joint doctrine.
       (F) An assessment of the adequacy of resources, and any 
     recommended changes for the process of providing resources, 
     for joint warfighting experimentation.
       (G) Any recommended changes in the authority or 
     responsibilities of the commander.
       (H) Any additional comments that the commander considers 
     appropriate.

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